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The automaker has blamed an earnings downgrade to US-imposed tariffs, while simultaneously calling on the UK government for greater active assistance.

This manufacturer, which builds its vehicles in factories across England and Wales, revised its earnings forecast on Monday, representing the another revision in the current year. The firm expects deeper losses than the previously projected £110m shortfall.

Seeking Government Backing

The carmaker expressed frustration with the UK government, informing shareholders that while it has communicated with officials from both the UK and US, it had productive talks with the American government but required more proactive support from British officials.

It urged British authorities to protect the interests of small-volume manufacturers such as itself, which provide thousands of jobs and contribute to local economies and the broader UK automotive supply chain.

International Commerce Effects

Trump has disrupted the global economy with a trade war this year, heavily impacting the automotive industry through the imposition of a 25 percent duty on 3rd April, in addition to an previous 2.5% levy.

In May, the US president and Keir Starmer agreed to a agreement to cap tariffs on one hundred thousand British-made vehicles per year to 10%. This rate took effect on June 30, aligning with the final day of Aston Martin's second financial quarter.

Agreement Concerns

However, Aston Martin expressed reservations about the bilateral agreement, arguing that the implementation of a US tariff quota mechanism introduces further complexity and restricts the company's ability to accurately forecast financial performance for this financial year end and possibly quarterly from 2026 onwards.

Additional Challenges

Aston Martin also pointed to reduced sales partly due to greater likelihood for logistical challenges, especially 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 manufacturing halt.

Market Reaction

Stock in the company, traded on the London Stock Exchange, fell by over 11 percent as markets opened on Monday morning before recovering some ground to stand down 7%.

The group delivered 1,430 vehicles in its third quarter, falling short of previous guidance of being roughly equal to the 1,641 vehicles delivered in the equivalent quarter last year.

Future Plans

Decline in demand comes as the manufacturer gears up to release its flagship hypercar, a rear-engine hypercar priced at around $1 million, which it hopes will increase earnings. Shipments of the vehicle are expected to begin in the final quarter of its financial year, although a forecast of about 150 deliveries in those final quarter was lower than previous expectations, reflecting engineering delays.

The brand, well-known for its appearances in the 007 movie series, has initiated a evaluation of its upcoming expenditure and spending plans, which it indicated would probably lead to lower spending in engineering and development compared with earlier forecasts of approximately £2 billion between its 2025 and 2029 fiscal years.

The company also informed investors that it no longer expects to generate positive free cash flow for the latter six months of its present fiscal year.

UK authorities was approached for comment.