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The automaker has attributed an earnings downgrade to US-imposed trade duties, as it calling on the UK government for greater active assistance.

The company, which builds its cars in factories across England and Wales, lowered its earnings forecast on Monday, representing the second such downgrade this year. It now anticipates deeper losses than the previously projected £110m deficit.

Seeking Official Backing

Aston Martin expressed frustration with the UK government, informing shareholders that despite having engaged with representatives on both sides, it had positive discussions directly with the US administration but needed more proactive support from UK ministers.

It urged British authorities to protect the interests of small-volume manufacturers like Aston Martin, which create numerous employment opportunities and contribute to regional finances and the broader UK automotive supply chain.

Global Trade Effects

The US President has disrupted the worldwide markets with a tariff conflict this year, significantly affecting the automotive industry through the imposition of a 25 percent duty on April 3, in addition to an previous 2.5% levy.

During May, American and British leaders agreed to a deal to cap tariffs on 100,000 British-made vehicles per year to 10 percent. This tariff level came into force on June 30, aligning with the final day of Aston Martin's second financial quarter.

Agreement Concerns

However, the manufacturer expressed reservations about the trade deal, arguing that the implementation of a US tariff quota mechanism adds further complexity and limits the company's ability to precisely predict earnings for this financial year end and possibly quarterly from 2026 onwards.

Other Challenges

The carmaker also pointed to reduced sales partly due to greater likelihood for logistical challenges, particularly after a recent digital attack at a major UK automotive manufacturer.

The British car industry has been rattled this year by a digital breach on Jaguar Land Rover, which led to a production freeze.

Financial Reaction

Shares in Aston Martin, listed on the London Stock Exchange, dropped by over 11 percent as markets opened on Monday morning before partially rebounding to stand down 7%.

The group sold 1,430 cars in its Q3, missing previous guidance of being roughly equal to the 1,641 vehicles sold in the equivalent quarter last year.

Future Plans

Decline in sales comes as Aston Martin prepares to launch its flagship hypercar, a mid-engine hypercar priced at approximately £743,000, which it expects will boost earnings. Shipments of the car are scheduled to begin in the final quarter of its financial year, though a projection of about 150 units in those final quarter was lower than previous expectations, due to technical setbacks.

Aston Martin, famous for its appearances in James Bond films, has initiated a review of its upcoming expenditure and investment strategy, which it indicated would likely result in lower capital investment 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 does not anticipate to achieve positive free cash flow for the latter six months of its present fiscal year.

UK authorities was contacted for comment.