Aston Martin has issued a profit warning, blaming weaker demand on tariffs imposed by US President Donald Trump. The luxury carmaker, which operates factories in Warwickshire and south Wales, now expects to report a loss exceeding £110 million, downgrading its outlook for the second time this year.
The company criticised the UK government, stating it had received 'more proactive support' from the US administration than from British ministers. It urged officials to protect small-volume manufacturers like Aston Martin, which provide thousands of jobs and contribute significantly to the UK automotive supply chain.
Trump's trade war has disrupted the global car industry, with a 25% tariff imposed on 3 April, adding to an existing 2.5% levy. A subsequent UK-US deal limited tariffs to 10% for 100,000 British-made cars annually from 30 June, but Aston Martin argued the quota mechanism adds complexity and hampers accurate forecasting.
The carmaker also cited supply chain pressures following a cyber-attack on Jaguar Land Rover, the UK's largest automotive employer, which froze production. Aston Martin delivered 1,430 cars in the third quarter, missing guidance of being 'broadly similar' to last year's 1,641 vehicles.
Despite plans to launch the $1m Valhalla hypercar, delivery forecasts have been revised down due to engineering delays. The company has initiated a review of cost and spending plans, likely reducing capital investment below the previously guided £2 billion for 2025-2029.
A government spokesperson defended the trade deal, noting the UK secured a 10% tariff rate, the lowest for any country, and pledged to help industry utilise the quota effectively. Meanwhile, the Society of Motor Manufacturers and Traders reported a 13.7% rise in UK new car sales in September, driven by electric vehicle discounts and grants.
