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Aston Martin has attributed an earnings downgrade to US-imposed tariffs, as it urging the UK government for more proactive support.

This manufacturer, which builds its vehicles in factories across England and Wales, lowered its earnings forecast on Monday, marking the second such revision this year. The firm expects a larger loss than the previously projected £110m deficit.

Requesting Government Support

The carmaker expressed frustration with the British leadership, informing investors that despite having engaged with officials on both sides, it had productive talks with the US administration but needed more proactive support from British officials.

It urged British authorities to safeguard the interests of small-volume manufacturers like Aston Martin, which provide numerous employment opportunities and add value to regional finances and the wider British car industry network.

International Commerce Impact

The US President has shaken the worldwide markets with a tariff conflict this year, heavily impacting the automotive industry through the introduction of a 25 percent duty on 3rd April, on top of an previous 2.5 percent charge.

In May, the US president and Keir Starmer reached a agreement to cap tariffs on one hundred thousand UK-built vehicles annually to 10%. This tariff level came into force on June 30, coinciding with the final day of the company's second financial quarter.

Agreement Criticism

However, the manufacturer expressed reservations about the trade deal, stating that the implementation of a American duty quota system adds additional complications and restricts the group's capacity to precisely predict earnings for the current fiscal year-end and potentially each quarter starting in 2026.

Additional Factors

The carmaker also pointed to weaker demand partly due to increased potential for logistical challenges, particularly after a recent cyber incident at a leading British car producer.

UK automotive sector has been rattled this year by a cyber-attack on the country's largest automotive employer, which prompted a production freeze.

Financial Response

Stock in the company, traded on the London Stock Exchange, fell by over 11 percent as markets opened on Monday at the start of the week before partially rebounding to stand down 7%.

The group sold one thousand four hundred thirty vehicles in its Q3, falling short of previous guidance of being broadly similar to the one thousand six hundred forty-one cars sold in the same period the previous year.

Future Plans

The wobble in demand coincides with Aston Martin gears up to release its flagship hypercar, a rear-engine supercar costing 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, although a projection of about 150 units in those final quarter was below earlier estimates, reflecting technical setbacks.

Aston Martin, well-known for its roles in James Bond films, has started a review of its future cost and investment strategy, which it said would likely lead to lower spending in engineering and development versus previous guidance of approximately £2 billion between its 2025 and 2029 fiscal years.

Aston Martin also informed investors that it no longer expects to achieve profitable cash generation for the second half of its current year.

The government was approached for a statement.