🔗 Share this article

The automaker has attributed a profit warning to US-imposed tariffs, while simultaneously urging the British authorities for more proactive support.

This manufacturer, which builds its cars in Warwickshire and south Wales, lowered its earnings forecast on Monday, marking the second such revision in the current year. The firm expects a larger loss than the previously projected £110m shortfall.

Requesting Official Backing

Aston Martin expressed frustration with the British leadership, telling investors that while it has engaged with officials from both the UK and US, it had positive discussions directly with the American government but needed greater initiative from UK ministers.

The company called on UK officials to protect the needs of niche automakers such as itself, which provide numerous employment opportunities and contribute to regional finances and the broader UK automotive supply chain.

Global Trade Impact

The US President has shaken the worldwide markets with a tariff conflict this year, significantly affecting the automotive industry through the imposition of a 25 percent duty on 3rd April, on top of an previous 2.5 percent charge.

In May, American and British leaders agreed to a deal to cap duties on 100,000 UK-built cars annually to 10 percent. This rate took effect on June 30, aligning with the last day of Aston Martin's second financial quarter.

Agreement Criticism

Nonetheless, the manufacturer criticised the bilateral agreement, stating that the introduction of a US tariff quota mechanism introduces further complexity and limits the company's capacity to accurately forecast earnings for the current fiscal year-end and possibly quarterly from 2026 onwards.

Additional Challenges

Aston Martin also pointed to reduced sales partially because of greater likelihood for logistical challenges, especially following a recent cyber incident at a leading British car producer.

UK automotive sector has been shaken this year by a cyber-attack on the country's largest automotive employer, which led to a manufacturing halt.

Financial Response

Shares in the company, traded on the London Stock Exchange, dropped by more than 11% as markets opened on Monday morning before partially rebounding to stand down 7%.

The group delivered 1,430 cars in its third quarter, missing earlier projections of being broadly similar to the one thousand six hundred forty-one cars sold in the equivalent quarter last year.

Future Plans

Decline in demand comes as the manufacturer gears up to release its Valhalla, a mid-engine hypercar priced at approximately $1 million, which it hopes will boost earnings. Shipments of the car are scheduled to start in the final quarter of its financial year, though a forecast of about 150 units in those final quarter was below previous expectations, reflecting technical setbacks.

Aston Martin, famous for its appearances in the 007 movie series, has initiated a review of its future cost and investment strategy, which it said would probably result in reduced spending in engineering and development compared with earlier forecasts of approximately £2 billion between its 2025 to 2029 fiscal years.

Aston Martin also told shareholders that it does not anticipate to achieve positive free cash flow for the latter six months of its present fiscal year.

The government was approached for a statement.