🔗 Share this article

The automaker has blamed a profit warning to US-imposed tariffs, while simultaneously calling on the UK government for more proactive support.

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

Seeking Government Support

Aston Martin expressed frustration with the UK government, telling shareholders that while it has communicated with representatives from both the UK and US, it had positive discussions with the US administration but needed greater initiative from UK ministers.

The company called on UK officials to protect the interests of small-volume manufacturers like Aston Martin, which create thousands of jobs and add value to local economies and the wider British car industry network.

International Commerce Impact

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

During May, the US president and Keir Starmer reached a agreement to cap tariffs on one hundred thousand British-made cars annually to 10%. This tariff level took effect on June 30, coinciding with the final day of Aston Martin's second financial quarter.

Agreement Concerns

However, Aston Martin criticised the bilateral agreement, arguing that the implementation of a US tariff quota mechanism adds further complexity and restricts the group's capacity to accurately forecast earnings for the current fiscal year-end and possibly quarterly from 2026 onwards.

Other Factors

The carmaker also cited reduced sales partly due to increased potential for logistical challenges, particularly 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 the country's largest automotive employer, which prompted a production freeze.

Financial Reaction

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

The group delivered one thousand four hundred thirty cars in its Q3, missing previous guidance of being broadly similar to the one thousand six hundred forty-one cars sold in the equivalent quarter last year.

Upcoming Initiatives

The wobble in sales comes as the manufacturer gears up to release its flagship hypercar, a rear-engine hypercar costing approximately £743,000, which it expects will boost earnings. Shipments of the vehicle are expected to start in the last quarter of its fiscal year, although a projection of approximately one hundred fifty deliveries in those final quarter was lower than previous expectations, due to technical setbacks.

Aston Martin, well-known for its appearances in James Bond films, has initiated a review of its future cost and investment strategy, which it said would likely result in reduced capital investment in R&D compared with previous guidance of approximately £2 billion between its 2025 and 2029 fiscal years.

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

The government was approached for comment.