🔗 Share this article The Luxury Carmaker Issues Earnings Alert Amid American Trade Pressures and Requests Government Support The automaker has attributed a profit warning to US-imposed trade duties, as it urging the UK government for greater active assistance. The company, producing its cars in Warwickshire and south Wales, revised its profit outlook on Monday, representing the second such downgrade in the current year. The firm expects a larger loss than the earlier estimated £110m shortfall. Seeking Official Backing The carmaker voiced concerns with the UK government, informing shareholders that despite having engaged with officials on both sides, it had productive talks directly with the American government but required more proactive support from British officials. The company called on British authorities to protect the interests of small-volume manufacturers like Aston Martin, which create numerous employment opportunities and add value to local economies and the broader UK automotive supply chain. International Commerce Impact Trump has shaken the worldwide markets with a trade war this year, significantly affecting the automotive industry through the imposition of a 25% tariff on 3rd April, in addition to an previous 2.5% levy. In May, the US president and Keir Starmer agreed to a agreement to limit tariffs on one hundred thousand British-made vehicles annually to 10%. This tariff level came into force on 30th June, coinciding with the last day of Aston Martin's second financial quarter. Agreement Concerns Nonetheless, the manufacturer expressed reservations about the bilateral agreement, stating that the introduction of a American duty quota system adds additional complications and limits the company's capacity to accurately forecast financial performance for the current fiscal year-end and potentially each quarter starting in 2026. Other Challenges The carmaker also pointed to reduced sales partially because of greater likelihood for supply chain pressures, especially after a recent cyber incident at a major UK automotive manufacturer. The British car industry has been rattled this year by a cyber-attack on Jaguar Land Rover, which prompted a manufacturing halt. Market Response Shares in Aston Martin, listed on the LSE, dropped by over 11 percent as markets opened on Monday morning before partially rebounding to stand down 7%. Aston Martin sold one thousand four hundred thirty vehicles in its Q3, missing previous guidance of being roughly equal to the one thousand six hundred forty-one vehicles sold in the same period the previous year. Future Plans The wobble in sales coincides with Aston Martin gears up to release its flagship hypercar, a rear-engine supercar priced at around £743,000, which it expects will increase earnings. Deliveries of the vehicle are scheduled to start in the final quarter of its fiscal year, though a projection of about 150 deliveries in those final quarter was lower than earlier estimates, due to technical setbacks. Aston Martin, famous for its roles in the 007 movie series, has initiated a review of its upcoming expenditure and spending plans, which it said would probably lead to lower capital investment in engineering and development compared with previous guidance of about £2bn between its 2025 to 2029 financial years. The company also told investors that it does not anticipate to generate profitable cash generation for the second half of its current year. The government was approached for a statement.