đŸ”— Share this article Aston Martin Announces Profit Warning Due to US Tariff Challenges and Requests Official Assistance Aston Martin has attributed a profit warning to US-imposed tariffs, while simultaneously urging the UK government for greater active assistance. This manufacturer, which builds its vehicles in factories across England and Wales, lowered its earnings forecast on Monday, representing the second such downgrade this year. It now anticipates a larger loss than the previously projected £110m shortfall. Seeking Government Backing The carmaker expressed frustration with the British leadership, informing investors that despite having communicated with representatives from both the UK and US, it had productive talks directly with the American government but required greater initiative from UK ministers. The company called on UK officials to safeguard the interests of niche automakers such as itself, which provide numerous employment opportunities and contribute to regional finances and the broader UK automotive supply chain. Global Trade Impact The US President has disrupted the worldwide markets with a trade war this year, significantly affecting the car sector through the introduction of a 25 percent duty on April 3, on top of an existing 2.5 percent charge. In May, the US president and Keir Starmer agreed to a deal to cap tariffs on 100,000 British-made vehicles per year to 10 percent. This rate took effect on June 30, aligning with the last day of the company's Q2. Agreement Criticism However, the manufacturer expressed reservations about the bilateral agreement, arguing that the introduction of a American duty quota system adds additional complications and restricts the company's ability to accurately forecast earnings for the current fiscal year-end and possibly each quarter starting in 2026. Other Factors Aston Martin also pointed to reduced sales partly due to greater likelihood for logistical challenges, especially following a recent cyber incident at a leading British car producer. The British car industry has been rattled this year by a digital breach on Jaguar Land Rover, which led to a manufacturing halt. Financial Reaction Shares in the company, traded on the LSE, dropped by over 11 percent as trading opened on Monday morning before partially rebounding to stand 7 percent lower. The group sold one thousand four hundred thirty cars in its Q3, missing previous guidance of being roughly equal to the 1,641 vehicles delivered in the equivalent quarter the previous year. Upcoming Initiatives Decline in sales coincides with the manufacturer gears up to release its Valhalla, a mid-engine supercar costing around $1 million, which it expects will boost earnings. Deliveries of the vehicle are expected to start in the final quarter of its fiscal year, though a forecast of about 150 units in those final quarter was lower than previous expectations, due to technical setbacks. Aston Martin, well-known for its roles in James Bond films, has started a review of its upcoming expenditure and investment strategy, which it indicated would probably lead to reduced spending in engineering and development versus previous guidance of approximately £2 billion between its 2025 and 2029 fiscal years. The company also informed shareholders that it no longer expects to achieve positive free cash flow for the latter six months of its current year. The government was contacted for comment.