🔗 Share this article Aston Martin Releases Profit Warning Due to American Trade Challenges and Seeks Government Assistance The automaker has attributed a profit warning to US-imposed trade duties, while simultaneously urging the British authorities for more active assistance. The company, producing its vehicles in factories across England and Wales, revised its profit outlook on Monday, marking the another revision this year. The firm expects deeper losses than the previously projected £110m shortfall. Seeking Official Support Aston Martin expressed frustration with the UK government, informing investors that while it has communicated with representatives from both the UK and US, it had productive talks with the American government but required more proactive support from UK ministers. It urged British authorities to safeguard the interests of niche automakers like Aston Martin, which create numerous employment opportunities and add value to regional finances and the wider British car industry network. Global Trade Impact Trump has shaken the global economy with a trade war 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. In May, American and British leaders reached a deal to cap duties on one hundred thousand UK-built vehicles annually to 10%. This tariff level took effect on 30th June, coinciding with the last day of Aston Martin's second financial quarter. Agreement Criticism However, Aston Martin expressed reservations about the bilateral agreement, stating that the implementation of a US tariff quota mechanism introduces additional complications and restricts the group's capacity to accurately forecast earnings for this financial year end and possibly quarterly from 2026 onwards. Other Challenges Aston Martin also pointed to weaker demand partially because of increased potential for supply chain pressures, especially following a recent cyber incident at a major UK automotive manufacturer. UK automotive sector has been shaken this year by a cyber-attack on Jaguar Land Rover, which prompted a manufacturing halt. Financial Response Shares in the company, traded on the LSE, fell by over 11 percent as markets opened on Monday morning before partially rebounding to be down 7%. Aston Martin sold one thousand four hundred thirty cars in its Q3, missing previous guidance of being broadly similar to the one thousand six hundred forty-one vehicles delivered in the equivalent quarter the previous year. Upcoming Plans The wobble in demand coincides with the manufacturer prepares to launch its Valhalla, a mid-engine supercar priced at approximately £743,000, which it hopes will increase profits. Shipments of the vehicle are expected to begin in the final quarter of its fiscal year, though a projection of about 150 deliveries in those three months was below earlier estimates, due to technical setbacks. The brand, well-known for its appearances in James Bond films, has started a review of its future cost and spending plans, which it indicated would probably lead to lower spending in engineering and development versus earlier forecasts of approximately £2 billion between its 2025 to 2029 financial years. Aston Martin also told investors that it does not anticipate to generate profitable cash generation for the latter six months of its present fiscal year. The government was approached for a statement.