🔗 Share this article

The automaker has attributed a profit warning to Donald Trump's trade duties, while simultaneously calling on the UK government for more proactive support.

This manufacturer, producing its cars in factories across England and Wales, revised its profit outlook on Monday, marking the another downgrade this year. The firm expects a larger loss than the previously projected £110m deficit.

Seeking Government Backing

Aston Martin expressed frustration with the British leadership, informing investors that despite having engaged with officials on both sides, it had positive discussions with the American government but required more proactive support from British officials.

The company called on UK officials to protect the needs of niche automakers like Aston Martin, which provide numerous employment opportunities and contribute to regional finances and the broader UK automotive supply chain.

Global Trade Effects

Trump has shaken the worldwide markets with a trade war this year, significantly affecting the car sector through the introduction of a 25% tariff on 3rd April, in addition to an previous 2.5% levy.

During May, American and British leaders agreed to a agreement to cap tariffs on 100,000 British-made vehicles per year to 10%. This rate came into force on 30th June, coinciding with the last day of Aston Martin's Q2.

Trade Deal Criticism

Nonetheless, Aston Martin expressed reservations about the trade deal, arguing that the implementation of a American duty quota system adds further complexity and limits the company's capacity to accurately forecast financial performance for the current fiscal year-end and possibly each quarter starting in 2026.

Additional Factors

Aston Martin also cited weaker demand partly due to increased potential for logistical challenges, particularly following a recent digital attack at a leading British car producer.

The British car industry has been rattled this year by a digital breach on the country's largest automotive employer, which led to a manufacturing halt.

Financial Response

Shares in the company, listed on the LSE, fell by more than 11% as trading opened on Monday morning before partially rebounding to stand 7 percent lower.

Aston Martin sold 1,430 vehicles in its Q3, falling short of previous guidance of being broadly similar to the 1,641 vehicles sold in the same period last year.

Future Plans

The wobble in sales coincides with Aston Martin prepares to launch its Valhalla, a mid-engine hypercar priced at around $1 million, which it hopes will increase profits. Shipments of the vehicle are scheduled to begin in the last quarter of its financial year, though a projection of about 150 deliveries in those final quarter was below earlier estimates, reflecting technical setbacks.

The brand, well-known for its appearances in the 007 movie series, has started a evaluation of its upcoming expenditure and investment strategy, which it said would likely result in reduced capital investment in R&D versus previous guidance of approximately £2 billion between its 2025 and 2029 fiscal years.

The company also told shareholders that it no longer expects to generate profitable cash generation for the second half of its present fiscal year.

The government was approached for comment.