The Luxury Carmaker Announces Profit Warning Amid American Trade Pressures and Seeks Government Assistance

The automaker has attributed a profit warning to Donald Trump's tariffs, while simultaneously calling on the British authorities for greater active assistance.

The company, which builds its cars in factories across England and Wales, lowered its earnings forecast on Monday, representing the second such downgrade this year. The firm expects a larger loss than the previously projected £110m shortfall.

Seeking Official Support

Aston Martin voiced concerns with the British leadership, informing shareholders that despite having communicated with officials on both sides, it had positive discussions with the US administration but required greater initiative from British officials.

The company called on UK officials to safeguard the interests of small-volume manufacturers such as itself, which create thousands of jobs and add value to local economies and the broader UK automotive supply chain.

International Commerce Effects

Trump has shaken the global economy with a trade war this year, significantly affecting the car sector through the introduction of a 25% tariff on 3rd April, on top of an existing 2.5% levy.

During May, the US president and Keir Starmer reached a agreement to cap tariffs on 100,000 British-made cars annually to 10 percent. This rate took effect on 30th June, aligning with the last day of the company's second financial quarter.

Agreement Criticism

However, the manufacturer expressed reservations about the trade deal, stating that the implementation of a American duty quota system adds further complexity and restricts the company's ability to precisely predict earnings for this financial year end and possibly each quarter starting in 2026.

Additional Challenges

The carmaker also pointed to weaker demand partially because of greater likelihood for logistical challenges, especially after a recent cyber incident at a major UK automotive manufacturer.

UK automotive sector has been rattled this year by a digital breach on the country's largest automotive employer, which prompted a production freeze.

Market Reaction

Shares in the company, 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 be 7 percent lower.

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

Future Plans

The wobble in sales coincides with Aston Martin prepares to launch its flagship hypercar, a mid-engine hypercar priced at approximately $1 million, which it hopes will boost earnings. Deliveries of the car are scheduled to begin in the final quarter of its fiscal year, though a forecast of approximately one hundred fifty units in those final quarter was lower than earlier estimates, due to technical setbacks.

The brand, well-known for its roles in James Bond films, has initiated a evaluation of its upcoming expenditure and investment strategy, which it said would likely lead to reduced capital investment in engineering and development compared with earlier forecasts of approximately £2 billion between its 2025 to 2029 fiscal years.

Aston Martin also informed shareholders that it no longer expects to achieve positive free cash flow for the second half of its current year.

UK authorities was contacted for a statement.