🔗 Share this article The Luxury Carmaker Announces Profit Warning Due to US Tariff Challenges and Seeks Official Assistance The automaker has blamed a profit warning to US-imposed trade duties, as it urging the British authorities for greater active assistance. The company, producing its cars in factories across England and Wales, lowered its earnings forecast on Monday, representing the another downgrade in the current year. It now anticipates deeper losses than the earlier estimated £110m shortfall. Requesting Government Backing Aston Martin expressed frustration with the British leadership, informing shareholders that despite having communicated with officials on both sides, it had productive talks directly with the US administration but needed greater initiative from UK ministers. It urged UK officials to safeguard the interests of niche automakers like Aston Martin, which create thousands of jobs and add value to local economies and the broader UK automotive supply chain. Global Trade Impact Trump has shaken the global economy with a tariff conflict this year, heavily impacting the automotive industry through the imposition of a 25% tariff on April 3, in addition to an existing 2.5 percent charge. During May, the US president and Keir Starmer reached a agreement to cap tariffs on one hundred thousand UK-built vehicles per year to 10%. This rate came into force on 30th June, coinciding with the final day of the company's Q2. Agreement Criticism Nonetheless, the manufacturer expressed reservations about the bilateral agreement, stating that the introduction of a American duty quota system introduces further complexity and restricts the group's capacity to accurately forecast earnings for this financial year end and potentially quarterly from 2026 onwards. Additional Challenges Aston Martin also cited reduced sales partially because of increased potential for logistical challenges, especially after a recent digital attack 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 Shares in the company, listed on the London Stock Exchange, fell by over 11 percent as markets opened on Monday morning before partially rebounding to stand down 7%. The group sold one thousand four hundred thirty cars in its Q3, missing earlier projections of being broadly similar to the 1,641 cars sold in the same period the previous year. Upcoming Plans The wobble in sales coincides with Aston Martin gears up to release its flagship hypercar, a mid-engine hypercar costing around $1 million, which it hopes will boost earnings. Shipments of the car are scheduled to start in the final quarter of its fiscal year, though a forecast of about 150 deliveries in those three months was below earlier estimates, reflecting engineering delays. Aston Martin, well-known for its appearances in the 007 movie series, has started a evaluation of its future cost and spending plans, which it indicated would probably result in lower capital investment in R&D compared with previous guidance of approximately £2 billion between its 2025 to 2029 financial years. The company also told investors that it does not anticipate to achieve positive free cash flow for the second half of its present fiscal year. The government was contacted for comment.