Aston Martin Releases Earnings Alert Due to US Tariff Pressures and Requests Official Assistance
The automaker has blamed a profit warning to Donald Trump's trade duties, while simultaneously calling on the British authorities for greater proactive support.
The company, which builds its cars in factories across England and Wales, revised its profit outlook on Monday, representing the second such downgrade in the current year. The firm expects a larger loss than the earlier estimated £110 million deficit.
Requesting Official Backing
Aston Martin voiced concerns with the British leadership, telling investors that while it has engaged with officials on both sides, it had productive talks directly with the US administration but required greater initiative from UK ministers.
It urged British authorities to safeguard the interests of small-volume manufacturers like Aston Martin, which create thousands of jobs and contribute to regional finances and the broader UK automotive supply chain.
International Commerce Effects
Trump has shaken the worldwide markets with a tariff conflict this year, heavily impacting the car sector through the imposition of a 25 percent duty on April 3, on top of an previous 2.5 percent charge.
During May, American and British leaders agreed to a agreement to cap tariffs on 100,000 UK-built vehicles annually to 10 percent. This tariff level came into force on June 30, aligning with the last day of Aston Martin's second financial quarter.
Agreement Criticism
However, Aston Martin expressed reservations about the bilateral agreement, arguing that the introduction of a American duty quota system adds further complexity and limits the group's capacity to precisely predict financial performance for this financial year end and potentially each quarter starting in 2026.
Other Challenges
Aston Martin also cited weaker demand partly due to increased potential for logistical challenges, especially after a recent cyber incident at a major UK automotive manufacturer.
The British car industry has been shaken this year by a cyber-attack on Jaguar Land Rover, which led to a manufacturing halt.
Market Reaction
Stock in Aston Martin, listed on the London Stock Exchange, fell by more than 11% as markets opened on Monday at the start of the week before recovering some ground to stand 7 percent lower.
The group delivered one thousand four hundred thirty vehicles in its Q3, falling short of earlier projections of being broadly similar to the one thousand six hundred forty-one cars delivered in the equivalent quarter last year.
Upcoming Plans
The wobble in sales coincides with Aston Martin prepares to launch its flagship hypercar, a mid-engine supercar costing around £743,000, which it expects will boost profits. Deliveries of the vehicle are scheduled to start in the final quarter of its financial year, though a forecast of about 150 deliveries in those three months was lower than earlier estimates, due to technical setbacks.
The brand, famous for its appearances in the 007 movie series, has initiated a review of its upcoming expenditure and spending plans, which it indicated would likely lead to reduced capital investment in R&D compared with previous guidance of about £2bn between its 2025 to 2029 fiscal years.
Aston Martin also informed investors that it no longer expects to generate profitable cash generation for the second half of its present fiscal year.
UK authorities was approached for a statement.