🔗 Share this article

Aston Martin has blamed a profit warning to Donald Trump's trade duties, while simultaneously calling on the British authorities for greater active assistance.

This manufacturer, which builds its cars in factories across England and Wales, lowered its profit outlook on Monday, marking the second such revision in the current year. The firm expects deeper losses than the previously projected £110 million deficit.

Requesting Government Support

The carmaker voiced concerns with the UK government, informing shareholders that while it has engaged with officials from both the UK and US, it had positive discussions with the American government but required greater initiative from UK ministers.

It urged British authorities to protect the interests of niche automakers like Aston Martin, which create thousands of jobs and contribute to regional finances and the wider British car industry network.

International Commerce Impact

The US President has disrupted the global economy with a tariff conflict this year, heavily impacting the car sector through the imposition of a 25 percent duty on 3rd April, on top of an previous 2.5 percent charge.

In May, the US president and Keir Starmer agreed to a deal to cap tariffs on 100,000 UK-built cars per year to 10%. This tariff level came into force on 30th June, aligning with the final day of Aston Martin's second financial quarter.

Agreement Criticism

Nonetheless, Aston Martin expressed reservations about the trade deal, arguing that the introduction of a US tariff quota mechanism adds additional complications and limits the company's ability to accurately forecast earnings for this financial year end and potentially each quarter starting in 2026.

Additional Factors

Aston Martin also cited weaker demand partially because of increased potential for supply chain pressures, particularly after a recent digital attack at a major UK automotive manufacturer.

UK automotive sector has been rattled this year by a digital breach on Jaguar Land Rover, which led to a production freeze.

Financial Response

Shares in the company, listed on the LSE, dropped by more than 11% as trading opened on Monday morning before recovering some ground to be 7 percent lower.

The group sold one thousand four hundred thirty vehicles in its third quarter, missing previous guidance of being broadly similar to the 1,641 vehicles sold in the equivalent quarter the previous year.

Upcoming Initiatives

The wobble in sales coincides with the manufacturer prepares to launch its flagship hypercar, a rear-engine hypercar priced at approximately $1 million, which it expects will increase earnings. Shipments of the vehicle are expected to begin in the final quarter of its financial year, although a projection of about 150 deliveries in those three months was below earlier estimates, reflecting engineering delays.

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

The company also informed investors that it does not anticipate to achieve positive free cash flow for the latter six months of its current year.

UK authorities was approached for a statement.