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Aston Martin has blamed an earnings downgrade to US-imposed tariffs, while simultaneously calling on the British authorities for greater active assistance.

The company, which builds its cars in factories across England and Wales, lowered its earnings forecast on Monday, representing the another revision in the current year. The firm expects a larger loss than the earlier estimated £110 million shortfall.

Seeking Government Support

The carmaker voiced concerns with the British leadership, telling investors that despite having engaged with officials from both the UK and US, it had productive talks with the US administration but required greater initiative from UK ministers.

The company called on British authorities to protect the interests of small-volume manufacturers like Aston Martin, which provide numerous employment opportunities and add value to local economies and the wider British car industry network.

Global Trade Impact

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

During May, the US president and Keir Starmer reached a deal to cap tariffs on 100,000 UK-built cars annually to 10%. This tariff level took effect on June 30, aligning with the final day of the company's second financial quarter.

Trade Deal Criticism

However, Aston Martin criticised the trade deal, stating that the implementation of a US tariff quota mechanism adds further complexity and restricts the company's ability to precisely predict financial performance for the current fiscal year-end and potentially each quarter starting in 2026.

Other Challenges

The carmaker also cited weaker demand partly due to greater likelihood for supply chain pressures, particularly after a recent cyber incident at a leading British car producer.

UK automotive sector has been shaken this year by a digital breach on the country's largest automotive employer, which led to a production freeze.

Financial Reaction

Shares in the company, listed on the LSE, dropped by over 11 percent as trading opened on Monday at the start of the week before recovering some ground to stand down 7%.

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

Upcoming Plans

The wobble in sales comes as Aston Martin prepares to launch its Valhalla, a rear-engine supercar costing around £743,000, which it expects will boost profits. Shipments of the car are scheduled to begin in the final quarter of its fiscal year, though a forecast of about 150 deliveries in those final quarter was below previous expectations, reflecting engineering delays.

Aston Martin, well-known for its appearances in the 007 movie series, has started a review of its upcoming expenditure and investment strategy, which it indicated would probably result in lower spending in R&D compared with previous guidance of about £2bn between its 2025 to 2029 financial years.

The company also informed investors that it no longer expects to generate profitable cash generation for the latter six months of its current year.

The government was approached for a statement.