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The automaker has attributed an earnings downgrade to US-imposed tariffs, while simultaneously urging the British authorities for greater proactive support.

This manufacturer, producing its vehicles in factories across England and Wales, lowered its earnings forecast on Monday, marking the another downgrade in the current year. The firm expects deeper losses than the earlier estimated £110 million deficit.

Requesting Government Backing

Aston Martin voiced concerns with the UK government, telling investors that while it has engaged with officials from both the UK and US, it had productive talks with the American government but needed more proactive support from UK ministers.

The company called on British authorities to protect the needs of niche automakers such as itself, which provide thousands of jobs and add value to local economies and the broader UK automotive supply chain.

International Commerce Impact

The US President has shaken the worldwide markets with a trade war this year, heavily impacting the automotive industry through the introduction of a 25% tariff on 3rd April, in addition to an existing 2.5 percent charge.

In May, the US president and Keir Starmer reached a deal to limit tariffs on one hundred thousand UK-built cars annually to 10%. This tariff level took effect on 30th June, aligning with the final day of Aston Martin's Q2.

Agreement Criticism

Nonetheless, the manufacturer criticised the bilateral agreement, stating that the introduction of a American duty quota system introduces further complexity and restricts the company's ability to accurately forecast financial performance for the current fiscal year-end and potentially each quarter starting in 2026.

Other Factors

The carmaker also cited reduced sales partially because of greater likelihood for logistical challenges, especially after a recent cyber incident at a major UK automotive manufacturer.

UK automotive sector has been rattled this year by a digital breach on the country's largest automotive employer, which led to a manufacturing halt.

Market Response

Stock in the company, listed on the LSE, dropped by over 11 percent as markets opened on Monday morning before recovering some ground to be down 7%.

The group sold one thousand four hundred thirty vehicles in its third quarter, falling short of earlier projections of being roughly equal to the 1,641 vehicles sold in the same period the previous year.

Future Plans

The wobble in demand coincides with the manufacturer prepares to launch its flagship hypercar, a rear-engine hypercar costing around $1 million, which it hopes will boost profits. Shipments of the vehicle are scheduled to start in the last quarter of its fiscal year, although a forecast of about 150 units in those final quarter was below previous expectations, reflecting engineering delays.

Aston Martin, famous for its appearances in James Bond films, has initiated a review of its upcoming expenditure and investment strategy, which it said would probably result in reduced capital investment in R&D versus earlier forecasts of approximately £2 billion between its 2025 and 2029 fiscal years.

Aston Martin also told investors that it no longer expects to generate profitable cash generation for the latter six months of its current year.

UK authorities was approached for comment.