Aston Martin has issued a profit warning, blaming Donald Trump's tariffs for weaker demand and urging the UK government to offer more 'proactive support'. The luxury carmaker, which manufactures vehicles in Warwickshire and south Wales, downgraded its profit outlook for the second time this year, now expecting a larger loss than the £110 million previously forecast.
The company criticised the UK government, stating that while it had 'positive dialogue' with the US administration, it sought more proactive support from British ministers. Aston Martin urged officials to protect small-volume manufacturers that provide thousands of jobs and contribute to local economies and the wider UK automotive supply chain.
Trump's trade war has disrupted the global economy, with a 25% tariff imposed on 3 April on top of an existing 2.5% levy. In May, a UK-US deal limited tariffs on 100,000 British-made cars a year to 10%, effective from 30 June. However, Aston Martin criticised the deal, arguing that the tariff quota mechanism adds complexity and limits its ability to forecast accurately.
The carmaker also cited weaker demand due to potential supply chain pressures, particularly after a recent cyber-attack on Jaguar Land Rover, which froze production. Aston Martin delivered 1,430 cars in the third quarter, missing previous guidance. Shares fell over 11% before recovering to a 7% decline.
Aston Martin is preparing to launch its $1 million Valhalla hypercar, but expects only about 150 deliveries in the final quarter, behind previous expectations due to engineering delays. The company has started a review of future costs and spending, likely resulting in lower capital investment than the £2 billion planned for 2025-2029. It no longer expects positive free cash flow for the second half of the current year.
