🔗 Share this article

The automaker has attributed an earnings downgrade to US-imposed tariffs, as it urging the UK government for greater proactive support.

The company, which builds its cars in factories across England and Wales, revised its profit outlook on Monday, representing the second such revision this year. It now anticipates deeper losses than the previously projected £110m shortfall.

Requesting Official Backing

The carmaker expressed frustration with the UK government, telling shareholders that while it has communicated with representatives from both the UK and US, it had positive discussions directly with the US administration but needed more proactive support from British officials.

It urged British authorities to protect the interests of small-volume manufacturers like Aston Martin, which create thousands of jobs and contribute to regional finances and the broader UK automotive supply chain.

International Commerce Impact

Trump has shaken the global economy with a tariff conflict this year, significantly affecting the automotive industry through the introduction of a 25% tariff on 3rd April, on top of an existing 2.5% levy.

In May, American and British leaders reached a deal to cap duties on one hundred thousand British-made cars per year to 10 percent. This rate took effect on June 30, aligning with the final day of the company's second financial quarter.

Agreement Concerns

However, Aston Martin expressed reservations about the bilateral agreement, stating that the introduction of a US tariff quota mechanism adds additional complications and restricts the company's ability to precisely predict earnings for this financial year end and possibly each quarter starting in 2026.

Additional Challenges

The carmaker also cited weaker demand partially because of increased potential for logistical challenges, particularly after a recent digital attack at a leading British car producer.

The British car industry has been shaken this year by a digital breach on the country's largest automotive employer, which prompted a manufacturing halt.

Market Response

Stock in Aston Martin, traded on the LSE, fell by more than 11% as markets opened on Monday at the start of the week before partially rebounding to be 7 percent lower.

The group delivered 1,430 vehicles in its Q3, missing earlier projections of being broadly similar to the 1,641 vehicles sold in the equivalent quarter last year.

Future Plans

The wobble in sales coincides with the manufacturer gears up to release its Valhalla, a mid-engine supercar priced at around $1 million, which it hopes will increase profits. Shipments of the car are scheduled to begin in the final quarter of its fiscal year, though a projection of about 150 deliveries in those final quarter was lower than earlier estimates, reflecting technical setbacks.

Aston Martin, famous for its roles in James Bond films, has started a review of its upcoming expenditure and spending plans, which it indicated would likely result in lower capital investment in engineering and development compared with earlier forecasts of about £2bn between its 2025 to 2029 fiscal years.

Aston Martin also informed shareholders that it no longer expects to achieve positive free cash flow for the second half of its present fiscal year.

The government was contacted for comment.