Aston Martin Announces Profit Warning Amid American Trade Pressures and Seeks Government Support

The automaker has attributed an earnings downgrade to US-imposed tariffs, while simultaneously urging the UK government for more active assistance.

The company, which builds its cars in factories across England and Wales, lowered its profit outlook on Monday, marking the another revision this year. The firm expects deeper losses than the earlier estimated £110m shortfall.

Seeking Official Backing

The carmaker voiced concerns with the UK government, informing shareholders that despite having engaged with officials from both the UK and US, it had productive talks directly with the US administration but needed more proactive support from UK ministers.

It urged UK officials to protect the interests of niche automakers such as itself, which provide numerous employment opportunities and contribute to regional finances and the broader UK automotive supply chain.

International Commerce Impact

Trump has disrupted the worldwide markets with a trade war this year, heavily impacting the automotive industry through the imposition of a 25 percent duty on April 3, on top of an existing 2.5 percent charge.

In May, American and British leaders agreed to a deal to limit tariffs on 100,000 British-made cars annually to 10 percent. This tariff level came into force on June 30, aligning with the last day of the company's Q2.

Agreement Concerns

Nonetheless, Aston Martin expressed reservations about the trade deal, arguing that the introduction of a US tariff quota mechanism introduces further complexity and restricts the group's capacity to precisely predict earnings for the current fiscal year-end and potentially each quarter starting in 2026.

Other Challenges

Aston Martin also cited weaker demand partially because of greater likelihood for logistical challenges, especially following a recent digital attack at a major UK automotive manufacturer.

The British car industry has been shaken this year by a cyber-attack on the country's largest automotive employer, which prompted a manufacturing halt.

Financial Reaction

Stock in Aston Martin, traded on the London Stock Exchange, fell by more than 11% as markets opened on Monday at the start of the week before partially rebounding to stand down 7%.

Aston Martin sold 1,430 vehicles in its third quarter, falling short of previous guidance of being broadly similar to the one thousand six hundred forty-one cars delivered in the same period last year.

Upcoming Plans

Decline in sales comes as the manufacturer prepares to launch its Valhalla, a rear-engine supercar priced at approximately $1 million, which it hopes will boost earnings. Shipments of the vehicle are expected to start in the final quarter of its fiscal year, although a forecast of about 150 deliveries in those final quarter was below previous expectations, due to engineering delays.

The brand, famous for its roles in James Bond films, has started a review of its upcoming expenditure and spending plans, which it indicated would probably result in reduced spending in R&D versus previous guidance of approximately £2 billion between its 2025 and 2029 financial years.

The company also informed shareholders that it does not anticipate to generate profitable cash generation for the latter six months of its present fiscal year.

UK authorities was approached for a statement.