The Luxury Carmaker Issues Profit Warning Due to US Tariff Challenges and Seeks Official Assistance

Aston Martin has attributed a profit warning to US-imposed trade duties, while simultaneously urging the British authorities for more active assistance.

This manufacturer, which builds its cars in factories across England and Wales, revised its earnings forecast on Monday, representing the another revision this year. The firm expects a larger loss than the previously projected £110m deficit.

Requesting Government Backing

The carmaker expressed frustration with the British leadership, informing investors that while it has communicated with officials from both the UK and US, it had positive discussions directly with the US administration but needed more proactive support from British officials.

The company called on British authorities to safeguard the needs of small-volume manufacturers such as itself, which create thousands of jobs and add value to regional finances and the broader UK automotive supply chain.

Global Trade Impact

Trump has disrupted the global economy with a tariff conflict this year, significantly affecting the car sector through the introduction of a 25 percent duty on April 3, on top of an existing 2.5 percent charge.

During May, the US president and Keir Starmer reached a deal to cap tariffs on one hundred thousand UK-built vehicles per year to 10 percent. This tariff level took effect on June 30, coinciding with the final day of Aston Martin's second financial quarter.

Agreement Criticism

However, the manufacturer criticised the bilateral agreement, stating that the implementation of a US tariff quota mechanism adds further complexity and restricts the company's ability to precisely predict earnings for the current fiscal year-end and potentially quarterly from 2026 onwards.

Additional Factors

The carmaker also pointed to weaker demand partially because of greater likelihood for supply chain pressures, especially 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 led to a production freeze.

Financial Reaction

Shares in the company, traded on the LSE, dropped by more than 11% as markets opened on Monday morning before recovering some ground to be down 7%.

Aston Martin delivered one thousand four hundred thirty cars in its Q3, falling short of earlier projections of being roughly equal to the one thousand six hundred forty-one vehicles sold in the same period last year.

Future Plans

The wobble in demand coincides with the manufacturer gears up to release its Valhalla, a mid-engine hypercar costing approximately $1 million, which it expects will boost earnings. Shipments of the vehicle are expected to begin in the final quarter of its financial year, though a forecast of approximately one hundred fifty units in those final quarter was lower than previous expectations, due to 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 lead to lower spending in R&D compared with earlier forecasts of about £2bn between its 2025 to 2029 fiscal years.

The company also informed investors that it no longer expects to achieve profitable cash generation for the second half of its current year.

The government was approached for a statement.