🔗 Share this article

Aston Martin has attributed a profit warning to US-imposed tariffs, while simultaneously calling on the British authorities for greater active assistance.

The company, producing its vehicles in Warwickshire and south Wales, lowered its profit outlook on Monday, representing the another downgrade this year. It now anticipates a larger loss than the previously projected £110 million deficit.

Seeking Government Support

The carmaker expressed frustration with the British leadership, informing investors that while it has communicated with officials from both the UK and US, it had positive discussions directly with the US administration but required more proactive support from UK ministers.

The company called on UK officials to protect the needs of small-volume manufacturers like Aston Martin, which provide thousands of jobs and contribute to regional finances and the broader UK automotive supply chain.

Global Trade Effects

Trump has disrupted the worldwide markets with a trade war this year, significantly affecting the automotive industry through the imposition of a 25 percent duty on April 3, in addition to an existing 2.5% levy.

In May, American and British leaders reached a agreement to limit tariffs on 100,000 British-made cars annually to 10%. This rate took effect on 30th June, coinciding with the final day of the company's Q2.

Agreement Concerns

However, the manufacturer expressed reservations about the bilateral agreement, arguing that the implementation of a American duty quota system adds additional complications and restricts the group's ability to precisely predict earnings for this financial year end and possibly quarterly from 2026 onwards.

Additional Challenges

Aston Martin also cited reduced sales partly due to greater likelihood for logistical challenges, particularly after a recent digital attack at a leading British car producer.

UK automotive sector has been shaken this year by a cyber-attack on Jaguar Land Rover, which led to a manufacturing halt.

Market Response

Shares in Aston Martin, listed on the LSE, dropped by over 11 percent as trading opened on Monday morning before partially rebounding to be 7 percent lower.

The group delivered one thousand four hundred thirty vehicles in its third quarter, falling short of previous guidance of being broadly similar to the one thousand six hundred forty-one vehicles sold in the same period last year.

Future Initiatives

Decline in demand comes as Aston Martin gears up to release its Valhalla, a mid-engine hypercar priced at around £743,000, which it expects will boost profits. Shipments of the car are expected to start in the last quarter of its financial year, although a projection of approximately one hundred fifty units in those final quarter was below previous expectations, reflecting technical setbacks.

Aston Martin, famous for its roles in the 007 movie series, has initiated a evaluation of its upcoming expenditure and spending plans, which it said would likely lead to lower spending in R&D compared with previous guidance of approximately £2 billion between its 2025 to 2029 financial years.

The company also told investors that it does not anticipate to generate positive free cash flow for the second half of its present fiscal year.

UK authorities was approached for a statement.