🔗 Share this article

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

This manufacturer, which builds its cars in factories across England and Wales, revised its earnings forecast on Monday, marking the another revision in the current year. The firm expects a larger loss than the earlier estimated £110 million shortfall.

Requesting Official Backing

The carmaker voiced concerns with the British leadership, informing investors that while it has engaged with officials on both sides, it had positive discussions directly with the American government but required greater initiative from UK ministers.

The company called on British authorities to protect the needs of niche automakers such as itself, which create numerous employment opportunities and contribute to local economies and the wider British car industry network.

Global Trade Effects

The US President has disrupted the worldwide markets with a trade war this year, significantly affecting the automotive industry through the introduction of a 25% tariff on 3rd April, in addition to an previous 2.5% levy.

In May, the US president and Keir Starmer reached a deal to limit tariffs on one hundred thousand UK-built vehicles annually to 10 percent. This tariff level took effect on 30th June, coinciding with the final day of Aston Martin's Q2.

Agreement Criticism

Nonetheless, Aston Martin expressed reservations about the trade deal, arguing that the implementation of a US tariff quota mechanism adds additional complications and restricts the group's ability to accurately forecast financial performance for the current fiscal year-end and potentially quarterly from 2026 onwards.

Additional Challenges

The carmaker also pointed to weaker demand partly due to increased potential for supply chain pressures, especially after a recent digital attack at a major UK automotive manufacturer.

The British car industry has been rattled this year by a cyber-attack on Jaguar Land Rover, which prompted a manufacturing halt.

Market Reaction

Shares in Aston Martin, listed on the London Stock Exchange, fell by over 11 percent as trading opened on Monday morning before recovering some ground to stand down 7%.

The group delivered one thousand four hundred thirty cars in its third quarter, missing earlier projections of being roughly equal to the 1,641 cars sold in the equivalent quarter last year.

Upcoming Plans

The wobble in sales coincides with Aston Martin gears up to release its Valhalla, a rear-engine hypercar priced at around £743,000, which it expects will increase earnings. Deliveries of the vehicle are scheduled to start in the last quarter of its fiscal year, though a forecast of about 150 units in those final quarter was lower than previous expectations, reflecting engineering delays.

Aston Martin, famous for its roles in the 007 movie series, has started a evaluation of its upcoming expenditure and investment strategy, which it said would probably result in lower spending in engineering and development versus earlier forecasts of approximately £2 billion between its 2025 and 2029 fiscal years.

The company also told shareholders that it no longer expects to generate positive free cash flow for the second half of its current year.

UK authorities was approached for a statement.