🔗 Share this article The Luxury Carmaker Releases Earnings Alert Amid American Trade Pressures and Seeks Official Support The automaker has attributed an earnings downgrade to US-imposed trade duties, while simultaneously urging the UK government for more proactive support. The company, producing its cars in factories across England and Wales, lowered its earnings forecast on Monday, representing the second such revision in the current year. The firm expects deeper losses than the previously projected £110m shortfall. Requesting Government Support The carmaker expressed frustration with the British leadership, telling investors that despite having engaged with representatives on both sides, it had productive talks with the American government but needed greater initiative from UK ministers. The company called on British authorities to protect the needs of small-volume manufacturers such as itself, which provide thousands of jobs and add value to regional finances and the wider British car industry network. Global Trade Impact Trump has disrupted the worldwide markets with a trade war this year, heavily impacting the automotive industry through the introduction of a 25 percent duty on 3rd April, in addition to an existing 2.5% levy. In May, American and British leaders agreed to a deal to limit tariffs on 100,000 British-made cars per year to 10 percent. This rate took effect on 30th June, coinciding with the last day of the company's Q2. Agreement Criticism Nonetheless, Aston Martin criticised the trade deal, stating that the introduction of a US tariff quota mechanism adds further complexity and restricts the company's ability to precisely predict earnings for this financial year end and possibly each quarter starting in 2026. Additional Challenges Aston Martin also cited weaker demand partially because of increased potential for logistical challenges, particularly 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. Market Response Stock in Aston Martin, listed on the LSE, fell by over 11 percent as trading opened on Monday morning before recovering some ground to stand 7 percent lower. The group sold one thousand four hundred thirty vehicles in its Q3, falling short of previous guidance of being roughly equal to the 1,641 vehicles sold in the equivalent quarter the previous year. Upcoming Plans The wobble in demand comes as Aston Martin prepares to launch its flagship hypercar, a rear-engine hypercar priced at approximately $1 million, which it hopes will boost profits. Deliveries of the car are expected to begin in the last quarter of its financial year, although a projection of about 150 units in those three months was lower than earlier estimates, reflecting technical setbacks. Aston Martin, well-known for its appearances in James Bond films, has initiated a review of its future cost and spending plans, which it indicated would probably result in lower spending in R&D versus earlier forecasts of about £2bn between its 2025 and 2029 fiscal years. The company also informed investors that it does not anticipate to generate positive free cash flow for the second half of its present fiscal year. The government was contacted for a statement.