🔗 Share this article The Luxury Carmaker Issues Profit Warning Due to American Trade Challenges and Requests Official Support The automaker has blamed an earnings downgrade to US-imposed trade duties, while simultaneously calling on the UK government for greater active assistance. The company, which builds its cars in factories across England and Wales, lowered its earnings forecast on Monday, marking the second such revision in the current year. It now anticipates a larger loss than the earlier estimated £110 million deficit. Requesting Government Backing The carmaker expressed frustration with the UK government, telling investors that while it has engaged with representatives 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 needs of niche automakers like Aston Martin, which provide thousands of jobs and contribute to local economies and the wider British car industry network. Global Trade Effects The US President 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 previous 2.5 percent charge. In May, American and British leaders agreed to a deal to limit duties on 100,000 British-made vehicles per year to 10%. This rate came into force on June 30, aligning with the final day of Aston Martin's Q2. Agreement Criticism Nonetheless, the manufacturer criticised the trade deal, stating that the implementation of a US tariff quota mechanism introduces additional complications and limits the group's capacity to precisely predict earnings for the current fiscal year-end and possibly each quarter starting in 2026. Additional Factors The carmaker also pointed to reduced sales partially because of increased potential for logistical challenges, 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. Market Reaction Shares in Aston Martin, traded on the LSE, fell by more than 11% as markets opened on Monday at the start of the week before partially rebounding to be 7 percent lower. The group sold one thousand four hundred thirty vehicles in its Q3, missing earlier projections of being broadly similar to the one thousand six hundred forty-one vehicles delivered in the same period last year. Future Initiatives The wobble in demand comes as Aston Martin gears up to release its flagship hypercar, a rear-engine supercar costing approximately £743,000, which it hopes will boost profits. Deliveries of the car are scheduled to begin in the last quarter of its fiscal year, though a forecast of about 150 deliveries in those final quarter was lower than earlier estimates, reflecting engineering delays. The brand, famous for its appearances in James Bond films, has started a review of its upcoming expenditure and spending plans, which it said would likely result in lower capital investment in engineering and development versus previous guidance of about £2bn between its 2025 to 2029 financial years. The company also told shareholders that it does not anticipate to generate positive free cash flow for the latter six months of its current year. UK authorities was approached for comment.