Aston Martin Announces Profit Warning Amid US Tariff Challenges and Requests Official Support

Aston Martin has attributed an earnings downgrade to US-imposed trade duties, while simultaneously calling on the British authorities for more proactive support.

The company, which builds its cars in Warwickshire and south Wales, revised its earnings forecast on Monday, marking the another downgrade this year. The firm expects deeper losses than the earlier estimated £110 million deficit.

Seeking Government Support

The carmaker voiced concerns with the UK government, informing investors that despite having engaged with officials on both sides, it had positive discussions directly with the US administration but required more proactive support from UK ministers.

It urged British authorities to safeguard the needs of small-volume manufacturers like Aston Martin, which provide thousands of jobs and add value to local economies and the broader UK automotive supply chain.

International Commerce Effects

The US President has shaken the worldwide markets with a trade war this year, significantly affecting the automotive industry through the introduction of a 25 percent duty on April 3, in addition to an existing 2.5 percent charge.

In May, the US president and Keir Starmer reached a agreement to cap tariffs on 100,000 British-made cars per year to 10%. This tariff level took effect on June 30, coinciding with the last day of the company's second financial quarter.

Trade Deal Criticism

However, the manufacturer expressed reservations about the trade deal, stating that the introduction of a US tariff quota mechanism adds further complexity and limits the company's capacity to accurately forecast financial performance for this financial year end and potentially quarterly from 2026 onwards.

Additional Factors

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

UK automotive sector has been shaken this year by a cyber-attack on the country's largest automotive employer, which led to a manufacturing halt.

Financial Reaction

Stock in Aston Martin, traded on the LSE, dropped by more than 11% as markets opened on Monday morning before partially rebounding to be down 7%.

The group delivered one thousand four hundred thirty vehicles in its Q3, falling short of previous guidance of being broadly similar to the 1,641 vehicles sold in the same period the previous year.

Upcoming Plans

The wobble in sales coincides with the manufacturer prepares to launch its flagship hypercar, a rear-engine supercar priced at around $1 million, which it hopes will boost profits. Shipments of the vehicle are expected to start in the final quarter of its fiscal year, although a projection of approximately one hundred fifty units in those three months was below earlier estimates, reflecting technical setbacks.

The brand, well-known for its appearances in the 007 movie series, has initiated a evaluation of its upcoming expenditure and spending plans, which it said would probably result in reduced capital investment in R&D compared with previous guidance of about £2bn between its 2025 and 2029 fiscal years.

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

The government was contacted for comment.