🔗 Share this article

Aston Martin has attributed a profit warning to US-imposed tariffs, as it calling on the British authorities for more active assistance.

The company, producing its vehicles in Warwickshire and south Wales, lowered its profit outlook on Monday, marking the another downgrade in the current year. The firm expects a larger loss than the earlier estimated £110 million shortfall.

Requesting Official Backing

Aston Martin expressed frustration with the British leadership, telling investors that despite having engaged with officials on both sides, it had positive discussions directly with the American government but needed greater initiative from UK ministers.

The company called on UK officials to safeguard the interests of niche automakers like Aston Martin, which create numerous employment opportunities and add value to local economies and the broader UK automotive supply chain.

Global Trade Impact

Trump has shaken the worldwide markets with a tariff conflict this year, heavily impacting the car sector through the introduction of a 25% tariff on 3rd April, on top of an existing 2.5% levy.

During May, the US president and Keir Starmer agreed to a deal to cap duties on 100,000 British-made cars annually to 10 percent. This rate came into force on 30th June, aligning with the last day of Aston Martin's second financial quarter.

Agreement Criticism

However, Aston Martin expressed reservations about the bilateral agreement, stating that the implementation of a American duty quota system introduces further complexity and restricts the company's ability to accurately forecast financial performance for the current fiscal year-end and potentially quarterly from 2026 onwards.

Other Factors

The carmaker also pointed to weaker demand partly due to greater likelihood for supply chain pressures, especially after a recent digital attack at a leading British car producer.

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

Financial Response

Stock in Aston Martin, listed on the London Stock Exchange, fell by more than 11% as markets opened on Monday morning before recovering some ground to stand down 7%.

Aston Martin delivered 1,430 cars in its Q3, missing earlier projections of being broadly similar to the one thousand six hundred forty-one cars sold in the equivalent quarter last year.

Future Initiatives

The wobble in demand coincides with Aston Martin prepares to launch its Valhalla, a rear-engine supercar priced at around $1 million, which it expects will increase earnings. Shipments of the vehicle 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 earlier estimates, due to technical setbacks.

The brand, well-known for its roles in James Bond films, has started a evaluation of its future cost and spending plans, which it said would probably lead to reduced spending in R&D versus previous guidance of approximately £2 billion between its 2025 to 2029 fiscal 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 approached for a statement.