🔗 Share this article

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

The company, which builds its cars in Warwickshire and south Wales, lowered its earnings forecast on Monday, representing the second such downgrade this year. The firm expects a larger loss than the earlier estimated £110 million shortfall.

Requesting Government Backing

The carmaker expressed frustration with the British leadership, telling shareholders that while it has communicated with officials on both sides, it had productive talks directly with the US administration but required greater initiative from British officials.

The company called on British authorities to safeguard the needs of niche automakers such as itself, which provide numerous employment opportunities and add value to regional finances and the wider British car industry network.

International Commerce Effects

The US President has shaken the worldwide markets with a trade war this year, heavily impacting the car sector through the imposition of a 25% tariff on April 3, in addition to an previous 2.5 percent charge.

In May, American and British leaders reached a agreement to limit duties on 100,000 British-made vehicles per year to 10 percent. This rate took effect on June 30, coinciding with the last day of the company's Q2.

Trade Deal Concerns

However, the manufacturer expressed reservations about the trade deal, arguing that the implementation of a American duty quota system introduces further complexity and restricts the company's capacity to precisely predict financial performance for the current fiscal year-end and potentially each quarter starting in 2026.

Other Factors

Aston Martin also cited weaker demand partly due to greater likelihood for supply chain pressures, particularly after 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 prompted a production freeze.

Market Response

Stock in Aston Martin, listed on the London Stock Exchange, dropped by over 11 percent as markets opened on Monday at the start of the week before recovering some ground to be 7 percent lower.

Aston Martin sold one thousand four hundred thirty vehicles in its Q3, missing previous guidance of being broadly similar to the one thousand six hundred forty-one vehicles delivered in the equivalent quarter the previous year.

Future Plans

Decline in demand comes as the manufacturer gears up to release its Valhalla, a mid-engine supercar priced at approximately £743,000, which it expects will increase profits. Deliveries of the car are scheduled to begin in the final quarter of its financial year, although a forecast of about 150 deliveries in those three months was below previous expectations, reflecting engineering delays.

The brand, famous for its appearances in James Bond films, has initiated a review of its upcoming expenditure and spending plans, which it said would probably result in lower capital investment in engineering and development compared with previous guidance of about £2bn between its 2025 to 2029 financial years.

The company also informed shareholders that it does not anticipate to achieve profitable cash generation for the second half of its present fiscal year.

UK authorities was contacted for comment.