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The automaker has blamed an earnings downgrade to US-imposed trade duties, while simultaneously calling on the British authorities for more proactive support.

This manufacturer, producing its cars in Warwickshire and south Wales, lowered its profit outlook on Monday, marking the second such downgrade in the current year. It now anticipates deeper losses than the previously projected £110 million shortfall.

Requesting Official Backing

Aston Martin expressed frustration with the British leadership, informing shareholders that despite having communicated with officials from both the UK and US, it had positive discussions with the US administration but needed greater initiative from British officials.

It urged British authorities to safeguard 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

The US President has disrupted the worldwide markets with a tariff conflict this year, significantly affecting the car sector through the introduction of a 25% tariff on 3rd April, in addition to an previous 2.5% levy.

During May, American and British leaders reached a agreement to limit tariffs on one hundred thousand British-made vehicles annually to 10 percent. This tariff level took effect on 30th June, coinciding with the last day of Aston Martin's second financial quarter.

Agreement Criticism

Nonetheless, Aston Martin expressed reservations about the bilateral agreement, stating that the introduction of a American duty quota system introduces further complexity and restricts the group's ability to accurately forecast financial performance for the current fiscal year-end and potentially quarterly from 2026 onwards.

Additional Challenges

The carmaker also cited weaker demand partially because of increased potential for supply chain pressures, particularly following a recent digital attack at a major UK automotive manufacturer.

UK automotive sector has been rattled this year by a cyber-attack on Jaguar Land Rover, which prompted a production freeze.

Financial Response

Shares in Aston Martin, listed 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 down 7%.

Aston Martin sold 1,430 vehicles in its Q3, falling short of previous guidance of being roughly equal to the one thousand six hundred forty-one vehicles delivered in the equivalent quarter last year.

Upcoming Plans

Decline in demand comes as the manufacturer prepares to launch its flagship hypercar, a mid-engine hypercar costing approximately $1 million, which it expects will boost earnings. Deliveries of the vehicle are expected to start in the last quarter of its financial year, though a forecast of approximately one hundred fifty units in those final quarter was lower than previous expectations, due to technical setbacks.

The brand, famous for its appearances in James Bond films, has started a evaluation of its upcoming expenditure and investment strategy, which it said would probably result in lower spending in engineering and development compared with earlier forecasts of about £2bn between its 2025 to 2029 fiscal years.

Aston Martin also informed investors that it no longer expects to generate profitable cash generation for the second half of its present fiscal year.

The government was approached for a statement.