🔗 Share this article

The automaker has attributed a profit warning to US-imposed trade duties, while simultaneously calling on the British authorities for more active assistance.

This manufacturer, which builds its cars in factories across England and Wales, revised its profit outlook on Monday, representing the second such downgrade this year. It now anticipates deeper losses than the earlier estimated £110 million deficit.

Seeking Official Backing

Aston Martin voiced concerns with the British leadership, informing investors that while it has communicated with representatives from both the UK and US, it had positive discussions directly with the US administration but needed more proactive support from British officials.

It urged UK officials to protect the interests of small-volume manufacturers such as itself, which create thousands of jobs and contribute to local economies and the broader UK automotive supply chain.

International Commerce Impact

The US President has shaken the global economy with a tariff conflict this year, heavily impacting the car sector through the introduction of a 25% tariff on April 3, on top of an existing 2.5 percent charge.

In May, the US president and Keir Starmer reached a deal to cap duties on one hundred thousand British-made cars annually to 10 percent. This rate took effect on June 30, aligning with the final day of the company's second financial quarter.

Agreement Concerns

Nonetheless, Aston Martin expressed reservations about the bilateral agreement, arguing that the introduction of a US tariff quota mechanism introduces additional complications and limits the group's ability to accurately forecast financial performance for the current fiscal year-end and possibly each quarter starting in 2026.

Additional Challenges

Aston Martin also pointed to weaker demand partly due to increased potential for supply chain pressures, especially following a recent cyber incident at a leading British car producer.

The British car industry has been rattled this year by a digital breach on the country's largest automotive employer, which prompted a production freeze.

Financial Response

Shares in the company, listed on the LSE, fell by over 11 percent as markets opened on Monday at the start of the week before partially rebounding to be 7 percent lower.

Aston Martin sold one thousand four hundred thirty cars in its Q3, missing earlier projections of being broadly similar to the 1,641 vehicles delivered in the same period the previous year.

Upcoming Initiatives

Decline in demand comes as the manufacturer prepares to launch its flagship hypercar, a rear-engine supercar priced at approximately £743,000, which it hopes will boost earnings. Shipments of the vehicle are scheduled to begin in the final quarter of its financial year, although a forecast of about 150 units in those final quarter was lower than previous expectations, due to technical setbacks.

Aston Martin, famous for its appearances in the 007 movie series, has initiated a evaluation of its future cost and investment strategy, which it indicated would likely result in lower capital investment in R&D compared with previous guidance of approximately £2 billion between its 2025 to 2029 financial years.

Aston Martin also told investors that it no longer expects to achieve profitable cash generation for the latter six months of its current year.

UK authorities was approached for comment.