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The automaker has attributed an earnings downgrade to US-imposed trade duties, as it calling on the British authorities for more proactive support.

This manufacturer, producing its cars in factories across England and Wales, revised its earnings forecast on Monday, representing the second such downgrade this year. The firm expects a larger loss than the previously projected £110 million deficit.

Seeking Government Backing

Aston Martin expressed frustration with the British leadership, telling shareholders that while it has engaged with officials from both the UK and US, it had positive discussions with the American government but required greater initiative from British officials.

It urged UK officials to safeguard the interests of niche automakers like Aston Martin, which create thousands of jobs and contribute to regional finances and the wider British car industry network.

Global Trade Effects

Trump has shaken the global economy with a trade war this year, heavily impacting the car sector through the introduction of a 25 percent duty on 3rd April, in addition to an existing 2.5% levy.

During May, the US president and Keir Starmer agreed to a deal to cap tariffs on 100,000 UK-built cars per year to 10 percent. This rate took effect on 30th June, aligning with the final day of Aston Martin's Q2.

Agreement Criticism

Nonetheless, Aston Martin expressed reservations about the bilateral agreement, stating that the introduction of a US tariff quota mechanism introduces additional complications and limits the company's capacity to accurately forecast financial performance for this financial year end and potentially each quarter starting in 2026.

Additional Challenges

Aston Martin also pointed to weaker demand partly due to greater likelihood for supply chain pressures, especially following a recent digital attack at a leading British car producer.

The British car industry has been shaken this year by a digital breach on Jaguar Land Rover, which prompted a manufacturing halt.

Market Response

Shares in Aston Martin, traded on the LSE, dropped by over 11 percent as markets opened on Monday morning before partially rebounding to be down 7%.

The group delivered one thousand four hundred thirty cars in its third quarter, falling short of previous guidance of being broadly similar to the one thousand six hundred forty-one cars sold in the equivalent quarter last year.

Future Initiatives

Decline in demand coincides with the manufacturer prepares to launch its Valhalla, a mid-engine supercar priced at around $1 million, which it hopes will boost profits. Shipments of the vehicle are expected to begin in the last quarter of its financial year, although a forecast of about 150 units in those final quarter was below earlier estimates, due to technical setbacks.

The brand, famous for its roles in the 007 movie series, has started a evaluation of its future cost and investment strategy, which it indicated would likely lead to lower spending in engineering and development versus previous guidance of about £2bn between its 2025 and 2029 fiscal years.

The company also told shareholders that it no longer expects to achieve profitable cash generation for the second half of its current year.

The government was approached for comment.