Aston Martin chief executive Andy Palmer sacked after 94% share price drop during his tenure

Andy Palmer’s reign as Aston Martin boss officially came to an end today after the company confirmed he had been sacked.

Palmer will be replaced by Tobias Moers, who currently runs Mercedes-AMG, the German manufacturer’s high-performance division. Reports of Palmer's departure first emerged over the weekend.

It spells the end of a troublesome two years for Palmer since the company's disastrous float back in 2018.

Aston Martin was struggling before the coronavirus crisis hit sales and its share price is down 94% since the company's flotation in 2018.

Aston Martin said in a statement: "The board has determined that now is the time for new leadership to deliver our plans."

Palmer said it had been a privilege to serve at Aston Martin for almost six years.

He said: “The launch of many new products, including the new DBX, demonstrates the dedication and capability of our employees. I would like to thank my management team and all the staff for their hard work and support, particularly during the challenges presented by Covid-19."

The news was well received by the markets, with Aston Martin's share price adding more than 40%.

Neil Wilson, analyst at the trading platform Markets.com, said the reaction from investors was “a pretty damning indictment of his tenure that the shares jumped this much after news of his sacking.”

He added: “Aston Martin has been one of the worst stock listings in living memory. Things had already got pretty horrendous before this year. The coronavirus outbreak has been the coup de grace.”

Lawrence Stroll, a billionaire who became the executive chair of Aston Martin after leading a £536 million rescue deal in March, said: “The board has determined that now is the time for new leadership to deliver our plans. On behalf of the board, I would like to thank Andy for his hard work, personal commitment and dedication to Aston Martin Lagonda since 2014.”

The company’s chief manufacturing operations officer, Keith Stanton, will oversee operations until Moers takes up the top job in August.

Moers said: “I am truly excited to be joining Aston Martin Lagonda at this point of its development. I have always had a passion for performance cars and relish the chance to work for this iconic brand.”