🔗 Share this article Aston Martin Issues Profit Warning Amid American Trade Pressures and Seeks Government Assistance The automaker has attributed an earnings downgrade to US-imposed tariffs, as it calling on the UK government for greater active assistance. This manufacturer, which builds its cars in Warwickshire and south Wales, revised its earnings forecast on Monday, marking the second such revision this year. It now anticipates a larger loss than the earlier estimated £110 million shortfall. Requesting Government Backing The carmaker expressed frustration with the UK government, informing shareholders that despite having communicated with representatives from both the UK and US, it had productive talks with the US administration but required more proactive support from UK ministers. It urged UK officials to safeguard the needs of niche automakers like Aston Martin, which create numerous employment opportunities and contribute to regional finances and the broader UK automotive supply chain. Global Trade Effects Trump has disrupted the worldwide markets with a tariff conflict this year, heavily impacting the car sector through the imposition of a 25 percent duty on April 3, on top of an previous 2.5 percent charge. During May, American and British leaders agreed to a agreement to cap tariffs on 100,000 British-made cars annually to 10 percent. This rate came into force on June 30, coinciding with the final day of Aston Martin's second financial quarter. Agreement Concerns However, Aston Martin expressed reservations about the trade deal, stating that the introduction of a American duty quota system introduces further complexity and restricts the group's capacity to precisely predict financial performance for this financial year end and possibly each quarter starting in 2026. Other Challenges Aston Martin also pointed to reduced sales partly due to greater likelihood for supply chain pressures, especially following a recent digital attack at a major UK automotive manufacturer. UK automotive sector has been rattled this year by a cyber-attack on the country's largest automotive employer, which prompted a manufacturing halt. Financial Response Stock in Aston Martin, traded on the LSE, dropped by over 11 percent as trading opened on Monday at the start of the week before partially rebounding to stand down 7%. The group delivered one thousand four hundred thirty cars in its Q3, falling short of earlier projections of being broadly similar to the 1,641 vehicles delivered in the same period the previous year. Upcoming Plans Decline in demand comes as Aston Martin prepares to launch its flagship hypercar, a mid-engine hypercar priced at approximately £743,000, which it hopes will boost profits. Deliveries of the vehicle are expected to start in the last quarter of its financial year, though a forecast of approximately one hundred fifty units in those three months was below earlier estimates, reflecting technical setbacks. Aston Martin, well-known for its appearances in the 007 movie series, has started a review of its upcoming expenditure and spending plans, which it indicated would probably result in lower spending in engineering and development compared with previous guidance of approximately £2 billion between its 2025 to 2029 fiscal years. The company also informed investors that it does not anticipate to generate profitable cash generation for the second half of its current year. UK authorities was contacted for comment.