🔗 Share this article The Luxury Carmaker Announces Profit Warning Amid American Trade Challenges and Requests Official Assistance Aston Martin has attributed a profit warning to US-imposed trade duties, while simultaneously calling on the British authorities for more active assistance. The company, 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 previously projected £110m shortfall. Requesting Official Backing The carmaker expressed frustration with the UK government, telling shareholders that despite having engaged with representatives on both sides, it had positive discussions with the US administration but required more proactive support from UK ministers. It urged UK officials to safeguard the interests of niche automakers like Aston Martin, which provide thousands of jobs and contribute to regional finances and the wider British car industry network. Global Trade Impact The US President has shaken the worldwide markets with a trade war this year, significantly affecting the automotive industry through the introduction of a 25% tariff on April 3, on top of an existing 2.5% levy. In May, American and British leaders agreed to a deal to cap tariffs on one hundred thousand British-made cars per year to 10 percent. This rate came into force on June 30, aligning with the final day of Aston Martin's Q2. Agreement Concerns However, Aston Martin criticised the bilateral agreement, stating that the implementation of a US tariff quota mechanism adds additional complications and limits the company's capacity to accurately forecast earnings for the current fiscal year-end and potentially quarterly from 2026 onwards. Additional Challenges Aston Martin also cited weaker demand partly due to increased potential for logistical challenges, especially following a recent cyber incident at a leading British car producer. UK automotive sector has been shaken this year by a cyber-attack on Jaguar Land Rover, which prompted a manufacturing halt. Market Response Shares in Aston Martin, traded on the LSE, dropped by more than 11% as markets opened on Monday at the start of the week before recovering some ground to stand 7 percent lower. The group sold 1,430 vehicles in its third quarter, falling short of earlier projections of being broadly similar to the 1,641 cars delivered in the same period last year. Future Initiatives The wobble in demand comes as the manufacturer gears up to release its Valhalla, a mid-engine supercar priced at around $1 million, which it hopes will increase earnings. Shipments of the car are expected to begin in the last quarter of its financial year, though a forecast of about 150 deliveries in those three months was below earlier estimates, reflecting engineering delays. Aston Martin, famous for its appearances in the 007 movie series, has initiated a evaluation of its future cost and investment strategy, which it said would probably lead to lower spending in engineering and development versus earlier forecasts of approximately £2 billion between its 2025 and 2029 financial years. Aston Martin also told investors that it does not anticipate to generate positive free cash flow for the second half of its current year. The government was contacted for a statement.