🔗 Share this article

Aston Martin has attributed a profit warning to Donald Trump's tariffs, as it urging the British authorities for more proactive support.

The company, which builds its cars in Warwickshire and south Wales, revised its profit outlook on Monday, marking the second such downgrade this year. The firm expects a larger loss than the previously projected £110m deficit.

Requesting Government Backing

The carmaker voiced concerns with the UK government, informing investors that despite having communicated with representatives from both the UK and US, it had positive discussions with the American government but needed greater initiative from UK ministers.

It urged British authorities to protect the needs of niche automakers like Aston Martin, which create thousands of jobs and contribute to regional finances and the broader UK automotive supply chain.

International Commerce Effects

The US President has disrupted the worldwide markets with a tariff conflict this year, heavily impacting the car sector through the introduction of a 25 percent duty on April 3, in addition to an previous 2.5 percent charge.

During May, the US president and Keir Starmer agreed to a agreement to cap duties on one hundred thousand British-made vehicles per year to 10 percent. This rate came into force on June 30, coinciding with the final day of Aston Martin's second financial quarter.

Trade Deal Concerns

However, the manufacturer criticised the trade deal, arguing that the implementation of a American duty quota system adds additional complications and limits the company's ability to accurately forecast earnings for the current fiscal year-end and potentially each quarter starting in 2026.

Other Factors

Aston Martin also pointed to reduced sales partly due to greater likelihood for logistical challenges, particularly 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 Jaguar Land Rover, which prompted a manufacturing halt.

Financial Reaction

Stock in the company, traded on the LSE, fell by over 11 percent as trading opened on Monday morning before recovering some ground to be 7 percent lower.

Aston Martin delivered 1,430 cars in its Q3, falling short of previous guidance of being roughly equal to the 1,641 cars delivered in the equivalent quarter last year.

Future Plans

Decline in demand coincides with the manufacturer gears up to release its Valhalla, a mid-engine supercar priced at approximately £743,000, which it hopes will boost profits. Shipments of the car are expected to begin in the last quarter of its financial year, though a forecast of approximately one hundred fifty units in those three months was lower than previous expectations, due to engineering delays.

Aston Martin, famous for its appearances in the 007 movie series, has initiated a evaluation of its future cost and investment strategy, which it said would probably result in lower spending in R&D compared with earlier forecasts of about £2bn between its 2025 to 2029 financial years.

The company also informed shareholders that it does not anticipate to achieve positive free cash flow for the second half of its current year.

UK authorities was approached for a statement.