LONDON (Reuters) -- Aston Martin has narrowed down the options over where it will construct a new plant to build the upcoming DBX crossover, CEO Andy Palmer told Reuters.
Palmer said the company had reduced a list of 19 possible locations to five or six sites, including Alabama in the U.S., eastern Europe, Wales and a site near the central English county of Warwickshire and the cities of Birmingham and Coventry.
Palmer said he would like it if the company built its new DBX model in its home UK market but that potential financial support was also an important factor in the decision-making process.
"If you're going to build a plant then obviously you want to, generally speaking, put your plant into an assisted area so that you can reduce the risk and the burden," he said, referring to regions in which European Union governments can provide support, such as parts of Wales and eastern Europe.
Aston Martin plans to make about 15,000 cars annually by the end of the decade. The plan includes building up to 5,000 DBX crossover vehicles per year at the new site separate from its existing plant at Gaydon in central England.
The automaker is aiming to increase the number of conventional sports car models that it builds at Gaydon to 7,000 by 2018, together with up to 3,000 vehicles under its revived Lagonda brand.
Daimler's Alabama connection
Aston Martin is also considering Alabama in the U.S. as a possible site to build the DBX. Daimler, which has a 5 percent share in the UK automaker, also builds Mercedes models there. But Palmer said there was no decision yet on whether to use a full Daimler manufacturing platform or just parts.
"It's an obvious choice when you take a complete platform from Daimler but that's not necessarily the only option that you have," he said, with the final decision over the location due by the end of the year.
Palmer said sales of its current line-up fell to 3,661 models in 2014 from around 4,200 in 2013 and that in 2015 the number would only be "slightly above" last year's levels. The firm had previously given a figure of 4,000 for deliveries for 2014.
Palmer, appointed in September 2014, is trying to turn around the money-losing carmaker, which saw its sales dive after the 2007-8 financial crisis.
Last week, the company said it would cut jobs as part of its restructuring that includes a move into SUV/crossover vehicles.
The automaker, which Palmer said made its fourth consecutive loss in 2014 and will not return to profitability until at least 2017, has suffered due to low volumes, not being part of a wider automotive group and a recall last year.
Earlier this year, the automaker raised 200 million pounds ($304.82 million) from the group's major shareholders, mainly Kuwaiti and Italian private equity firms, to help fund its turnaround plan.
Palmer said China would be an important market for the DBX crossover and that he was not concerned by economic slowdown that has hit car sales growth.
"How sure are we on the longer term that China will continue to grow? I'm pretty sure. There's a market there and it's predominately moving towards being an SUV market."
