LONDON -- Aston Martin will decide in the next few weeks where it will build a new plant and will choose from four sites in the UK, the U.S. and the Middle East, a source familiar with the firm's thinking said.
A source told Reuters on Tuesday that two UK sites, one in the U.S. state of Alabama and one in the Middle East were being considered by the board of the UK automaker.
"The board is reviewing the options and will make a decision by the end of the year or the first few weeks of January," the source said.
Aston Martin declined to comment.
The automaker said in October it had narrowed a list of possible locations to build up to 5,000 DBX crossover models per year. CEO Andy Palmer said at the time that he would like to expand production at home in the UK, but that potential financial support was also an important factor in the decision-making process.
UK lawmaker Andrew Mitchell said last month that a site in his central England constituency of Sutton Coldfield was in "pole position" to be picked by the automaker if the right terms were agreed, creating up to 1,000 jobs. When asked, the source said Sutton Coldfield "was presumed to be one of the UK sites."
Aston Martin currently has just one production plant, which is in Gaydon, central England.
The company plans a major expansion program in a bid to return to profitability which will see volumes of its existing product lineup of sports cars boosted, as well as the launch of the DBX and a planned revival of the automaker’s Lagonda range.
The DB11, which will replace its DB9 flagship model, starts deliveries in September. The DBX will be rolled out by the end of the decade, and the revival of the ultraluxury Lagonda brand, which is being geared to woo buyers away from Rolls-Royce and Bentley, will follow a few years later.
Aston Martin has lost money in each of the last four years. The company secured 100 million pounds ($150 million) from its owners in 2015 with a further 100 million to be drawn over the next few months to help fund its expansion.
The firm has said that financial incentives and whether it decides to use a complete car platform from 5 percent shareholder Daimler to build the DBX were important factors in the decision concerning a new plant.
Aston Martin has struggled since sales nosedived following the 2007/8 financial crisis. Last year the firm sold 3,661 models, down from a 2007 peak of nearly 7,300 cars. The company aims to sell about 15,000 models by 2020.
Possible IPO
Separately, Aston Martin has made clear its aim to reposition itself and broaden its appeal as a luxury brand as it moves towards a possible public listing in the future.
"It's important for us in the future that we're seen as a luxury company," Palmer told journalists on Tuesday. "We seek to position ourselves as the automotive equivalent of Hermes, not as the counterpart of Ferrari."
Both Aston Martin and Ferrari have limited appeal in markets like China where wealthy drivers prefer sedans and SUVs. To counter this, Aston Martin has boosted its sales team in China, which this year will account for about 200 sales with a similar number expected in 2016.
To return to profit, Aston Martin cut 295 jobs this year. With that boost, earnings before interest, taxes, depreciation and amortization are set to rise more than 20 percent in 2016 from 65 million to 70 million pounds ($105 million) this year, the company said.
Reuters and Bloomberg contributed to this report
