🔗 Share this article

Aston Martin has blamed an earnings downgrade to Donald Trump's tariffs, as it urging the UK government for more proactive support.

The company, which builds its vehicles in Warwickshire and south Wales, lowered its profit outlook on Monday, marking the another revision this year. It now anticipates deeper losses than the earlier estimated £110m deficit.

Seeking Government Backing

Aston Martin voiced concerns with the British leadership, informing shareholders that while it has communicated with officials on both sides, it had productive talks directly with the American government but required more proactive support from UK ministers.

It urged UK officials to protect the needs of small-volume manufacturers like Aston Martin, which provide numerous employment opportunities 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 trade war this year, significantly affecting the car sector through the introduction of a 25 percent duty on April 3, in addition to an existing 2.5% levy.

During May, American and British leaders agreed to a agreement to limit duties on 100,000 UK-built cars annually to 10%. This rate came into force on June 30, coinciding with the final day of the company's Q2.

Agreement Criticism

Nonetheless, the manufacturer expressed reservations about the bilateral agreement, arguing that the implementation of a US tariff quota mechanism adds further complexity and limits the company's capacity to precisely predict financial performance for the current fiscal year-end and possibly each quarter starting in 2026.

Additional Factors

Aston Martin also pointed to reduced sales partially because of greater likelihood for supply chain pressures, particularly following a recent digital attack at a leading British car producer.

UK automotive sector has been rattled this year by a cyber-attack on the country's largest automotive employer, which prompted a production freeze.

Market Reaction

Shares in the company, traded on the LSE, dropped 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 Q3, falling short of earlier projections of being roughly equal to the one thousand six hundred forty-one vehicles sold in the equivalent quarter the previous year.

Upcoming Initiatives

The wobble in demand comes as the manufacturer prepares to launch its flagship hypercar, a mid-engine supercar costing approximately $1 million, which it expects will boost earnings. Shipments of the vehicle are expected to begin in the last quarter of its financial year, though a forecast of approximately one hundred fifty units in those final quarter was below previous expectations, reflecting technical setbacks.

The brand, famous for its roles in James Bond films, has initiated a review of its upcoming expenditure and spending plans, which it indicated would probably result in reduced spending in R&D versus earlier forecasts of about £2bn between its 2025 to 2029 financial years.

Aston Martin also told shareholders that it no longer expects to achieve positive free cash flow for the latter six months of its current year.

UK authorities was contacted for comment.