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The automaker has blamed a profit warning to Donald Trump's tariffs, while simultaneously urging the UK government for greater proactive support.

This manufacturer, which builds its vehicles in Warwickshire and south Wales, revised its earnings forecast on Monday, marking the second such downgrade this year. It now anticipates a larger loss than the previously projected £110 million shortfall.

Requesting Government Support

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

It urged UK officials to protect the needs of niche automakers like Aston Martin, which create numerous employment opportunities and add value to local economies and the wider British car industry network.

International Commerce Impact

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

During May, the US president and Keir Starmer agreed to a deal to limit tariffs on 100,000 UK-built cars annually to 10 percent. This tariff level came into force on 30th June, coinciding with the final day of the company's Q2.

Trade Deal Concerns

Nonetheless, Aston Martin expressed reservations about the trade deal, stating that the implementation of a American duty quota system adds further complexity and limits the company's capacity to precisely predict financial performance for this financial year end and potentially each quarter starting in 2026.

Other Challenges

Aston Martin also cited weaker demand partially because of greater likelihood for logistical challenges, particularly after a recent digital attack at a major UK automotive manufacturer.

UK automotive sector has been rattled this year by a digital breach on Jaguar Land Rover, which led to a production freeze.

Financial Response

Stock in Aston Martin, listed on the London Stock Exchange, dropped by more than 11% as markets opened on Monday at the start of the week before partially rebounding to be 7 percent lower.

Aston Martin sold 1,430 cars in its third quarter, falling short of previous guidance of being broadly similar to the 1,641 vehicles delivered in the same period the previous year.

Future Initiatives

Decline in demand coincides with Aston Martin gears up to release its Valhalla, a mid-engine supercar priced at around $1 million, which it expects will increase profits. Shipments of the vehicle are scheduled to start in the last quarter of its financial year, although a forecast of approximately one hundred fifty units in those final quarter was lower than earlier estimates, reflecting technical setbacks.

Aston Martin, famous for its roles in James Bond films, has initiated a evaluation of its future cost and spending plans, which it said would likely result in lower spending in R&D versus previous guidance of about £2bn between its 2025 and 2029 fiscal years.

The company also informed shareholders that it does not anticipate to achieve positive free cash flow for the second half of its current year.

UK authorities was approached for a statement.