A Union says it is "not as concerned" about the Aston Martin factory in St Athan, in the Vale of Glamorgan, after the luxury car manufacturer announced plans to cut up to 500 jobs across its UK operation.

The troubled company has said it will launch consultations on the job losses, which have been driven by lower-than-planned production volumes and improved productivity.

Aston Martin said the restructuring is expected to cost around £12 million.

Whilst Aston Martin has not confirmed where the job losses might be it did tell investors on Thursday that its first SUV car, the DBX - which is built at their St Athan site - is on track for deliveries this summer and has a "strong order book".

Credit: PA

Unite Wales said that while the announcement might cause "significant concerns" for works at the St Athan site, they are "not as concerned" because it is not yet at full capacity or in full production.

We are seriously concerned about the potential impact of the announcement upon our members at Aston Martin in Gaydon and its other sites in the UK. However, Unite in Wales is not as concerned about any impact upon the DBX project at AML St Athan at this stage because the site is not yet at full capacity or in full production. Naturally there will be concerns amongst the permanent and temporary workforce alongside contractors on site at St Athan about their future. We will therefore be looking for assurances from AML over employment security and its future plans for the DBX project at St Athan.

Unite Wales statement

The UK manufacturer, famous for making James Bond's car of choice, will "right-size the organisational structure" amid lower demand for sports cars, in a bid to improve profitability.

It comes after a testing year for the manufacturer, as it was blighted with numerous profit warnings.

The measures announced today will right-size the organisational structure and bring the cost base into line with reduced sports car production levels, consistent with restoring profitability.

Aston Martin statement
The Prince of Wales exiting an Aston Martin DBX during a visit to the factory at St Athan. Credit: PA

Last week, the company's chief executive, Dr Andy Palmer, announced he was leaving the manufacturer after a collapse in its share price.

Dr Palmer, who has led Aston Martin since 2014, is to be replaced as chief executive by Tobias Moers, who currently runs Mercedes-AMG, which is the German manufacturer's high-performance division.

The number of vehicles sold by Aston Martin almost halved in the first three months of the year, as it was hit by the beginning of the coronavirus crisis.

This caused loss before tax to soar to £118.9 million, up from £17.3 million the year before.