🔗 Share this article

The automaker has attributed an earnings downgrade to Donald Trump's tariffs, as it urging the British authorities for greater proactive support.

This manufacturer, producing its vehicles in Warwickshire and south Wales, lowered its profit outlook on Monday, representing the second such revision in the current year. The firm expects deeper losses than the earlier estimated £110 million deficit.

Requesting Official Support

The carmaker expressed frustration with the British leadership, informing investors that despite having engaged with officials from both the UK and US, it had positive discussions directly with the US administration but needed greater initiative from UK ministers.

It urged British authorities to safeguard the needs of small-volume manufacturers such as itself, which provide thousands of jobs and contribute to local economies and the wider British car industry network.

Global Trade Impact

The US President has shaken the global economy 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 existing 2.5 percent charge.

In May, the US president and Keir Starmer agreed to a deal to cap duties on one hundred thousand UK-built cars per year to 10 percent. This tariff level took effect on 30th June, aligning with the last day of Aston Martin's second financial quarter.

Agreement Concerns

However, the manufacturer criticised the bilateral agreement, stating that the implementation of a American duty quota system introduces further complexity and restricts the company's ability to precisely predict financial performance for the current fiscal year-end and possibly each quarter starting in 2026.

Other Challenges

The carmaker also cited reduced sales partly due to increased potential for logistical challenges, especially after a recent digital attack at a leading British car producer.

UK automotive sector has been shaken this year by a cyber-attack on Jaguar Land Rover, which prompted a manufacturing halt.

Financial Response

Shares in Aston Martin, listed on the London Stock Exchange, fell by more than 11% as markets opened on Monday at the start of the week before partially rebounding to be down 7%.

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

Upcoming Plans

Decline in demand coincides with Aston Martin prepares to launch its Valhalla, a rear-engine supercar costing approximately $1 million, which it expects will increase earnings. Shipments of the car are scheduled to start in the final quarter of its financial year, although a projection of approximately one hundred fifty units in those three months was lower than previous expectations, reflecting technical setbacks.

The brand, well-known for its appearances in James Bond films, has started a evaluation of its future cost and investment strategy, which it said would likely result in lower spending in R&D versus previous guidance of approximately £2 billion between its 2025 and 2029 financial years.

The company also told shareholders that it no longer expects to generate profitable cash generation for the latter six months of its present fiscal year.

The government was approached for comment.