🔗 Share this article

The automaker has attributed a profit warning to Donald Trump's tariffs, as it calling on the British authorities for greater proactive support.

This manufacturer, producing its cars in Warwickshire and south Wales, revised its profit outlook on Monday, marking the second such revision in the current year. It now anticipates a larger loss than the earlier estimated £110 million deficit.

Seeking Official Support

Aston Martin voiced concerns with the UK government, telling shareholders that while it has engaged with representatives on both sides, it had positive discussions directly with the US administration but required greater initiative from UK ministers.

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

Global Trade Impact

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 April 3, in addition to an existing 2.5% levy.

In May, the US president and Keir Starmer reached a agreement to limit tariffs on one hundred thousand UK-built cars per year to 10 percent. This tariff level took effect on June 30, aligning with the final day of the company's Q2.

Agreement Concerns

Nonetheless, the manufacturer expressed reservations about the bilateral agreement, stating that the implementation of a US tariff quota mechanism adds additional complications and limits the company's capacity to accurately forecast financial performance for the current fiscal year-end and potentially quarterly from 2026 onwards.

Other Factors

The carmaker also cited weaker demand partially because of increased potential for logistical challenges, particularly following 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 led to a manufacturing halt.

Financial Reaction

Stock in Aston Martin, traded on the LSE, dropped by over 11 percent as markets opened on Monday morning before partially rebounding to stand 7 percent lower.

The group sold 1,430 cars in its Q3, missing previous guidance of being broadly similar to the 1,641 cars sold in the equivalent quarter last year.

Upcoming Plans

The wobble in demand coincides with Aston Martin prepares to launch its Valhalla, a mid-engine hypercar costing approximately £743,000, which it expects will increase earnings. Shipments of the car are scheduled to start in the final quarter of its fiscal year, although a projection of about 150 deliveries in those three months was below earlier estimates, due to technical setbacks.

Aston Martin, famous for its appearances in James Bond films, has started a review of its upcoming expenditure and investment strategy, which it indicated would probably result in lower capital investment in engineering and development versus earlier forecasts of approximately £2 billion between its 2025 to 2029 financial years.

Aston Martin also informed shareholders that it no longer expects to achieve profitable cash generation for the second half of its current year.

UK authorities was contacted for comment.