Aston Martin warns on profits amid US tariffs and seeks ‘proactive support'

Core Viewpoint - Aston Martin has issued a profit warning, attributing it to Donald Trump's tariffs and calling for more proactive support from the UK government [1][2]. Group 1: Profit Outlook and Financial Performance - Aston Martin downgraded its profit outlook for the second time this year, now expecting a larger loss than the previously forecasted £110 million [1]. - The company delivered 1,430 cars in the third quarter, missing its previous guidance of being "broadly similar" to the 1,641 vehicles sold in the same period last year [6]. - Aston Martin no longer expects to generate positive free cash flow for the second half of the current year [9]. Group 2: Impact of Tariffs and Trade Agreements - The company criticized the US tariff quota mechanism, stating it complicates forecasting for the financial year and beyond [4]. - A 25% tariff was imposed by Trump on April 3, 2023, on top of an existing 2.5% levy, which has disrupted the global economy and the car industry [3]. - A deal was reached in May to limit tariffs on 100,000 British-made cars to 10%, effective June 30, but Aston Martin found this deal unsatisfactory [3][4]. Group 3: Demand and Market Conditions - Weaker demand has been partly attributed to supply chain pressures, exacerbated by a recent cyber incident affecting a major UK automotive manufacturer [4]. - The British car industry has faced challenges this year, including a cyber-attack on Jaguar Land Rover, which has impacted production [5]. Group 4: Future Plans and Investments - Aston Martin is reviewing its future cost and spending plans, likely resulting in lower capital investment in engineering and development compared to the previous guidance of about £2 billion between 2025 and 2029 [9]. - The company is preparing to launch its $1 million (£743,000) Valhalla hypercar, with expected deliveries in the final quarter of the financial year, although forecasts have been adjusted due to engineering delays [7].