Aston Martin Issues Earnings Alert Due to American Trade Pressures and Requests Official Support

Aston Martin has blamed a profit warning to US-imposed trade duties, while simultaneously urging the British authorities for greater proactive support.

This manufacturer, which builds its vehicles in factories across England and Wales, lowered its profit outlook on Monday, marking the second such revision this year. It now anticipates deeper losses than the earlier estimated £110m deficit.

Seeking Official Backing

Aston Martin voiced concerns with the UK government, telling investors that while it has engaged with officials from both the UK and US, it had positive discussions with the US administration but required more proactive support from UK ministers.

It urged British authorities to safeguard the needs of small-volume manufacturers such as itself, which create numerous employment opportunities and contribute to regional finances and the wider British car industry network.

Global Trade Impact

Trump has disrupted the worldwide markets with a tariff conflict this year, significantly affecting the car sector through the introduction of a 25% tariff on April 3, on top of an existing 2.5% levy.

During May, American and British leaders agreed to a deal to cap duties on 100,000 UK-built vehicles per year to 10 percent. This tariff level took effect on June 30, aligning with the final day of Aston Martin's Q2.

Trade Deal Criticism

Nonetheless, the manufacturer criticised the trade deal, arguing that the implementation of a American duty quota system introduces additional complications and limits the company's capacity to precisely predict earnings for the current fiscal year-end and possibly quarterly from 2026 onwards.

Other Challenges

Aston Martin also pointed to reduced sales partly due to greater likelihood for logistical challenges, especially following a recent cyber incident at a major UK automotive manufacturer.

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

Market Response

Stock in the company, listed on the LSE, fell by over 11 percent as trading opened on Monday at the start of the week before partially rebounding to be 7 percent lower.

The group delivered 1,430 cars in its Q3, missing previous guidance of being broadly similar to the one thousand six hundred forty-one vehicles sold in the equivalent quarter last year.

Upcoming Plans

The wobble in sales coincides with the manufacturer prepares to launch its Valhalla, a mid-engine hypercar priced at around $1 million, which it expects will increase profits. Deliveries of the car are scheduled to begin in the last quarter of its financial year, though a forecast of approximately one hundred fifty deliveries in those three months was below earlier estimates, reflecting engineering delays.

Aston Martin, famous for its appearances in James Bond films, has initiated a evaluation of its upcoming expenditure and investment strategy, which it said would probably lead to lower capital investment in engineering and development versus previous guidance of approximately £2 billion between its 2025 to 2029 fiscal years.

Aston Martin also told shareholders that it does not anticipate to generate positive free cash flow for the latter six months of its present fiscal year.

UK authorities was contacted for a statement.