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The automaker has blamed an earnings downgrade to Donald Trump's trade duties, as it calling on the UK government for more proactive support.

The company, producing its cars in Warwickshire and south Wales, lowered its profit outlook on Monday, representing the second such revision in the current year. The firm expects deeper losses than the earlier estimated £110 million shortfall.

Seeking Official Backing

Aston Martin expressed frustration with the British leadership, informing investors that while it has communicated with representatives from both the UK and US, it had positive discussions directly with the American government but required greater initiative from UK ministers.

It urged British authorities to protect the needs of small-volume manufacturers such as itself, which create 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 trade war this year, heavily impacting the car sector through the imposition of a 25% tariff on 3rd April, on top of an previous 2.5 percent charge.

In May, American and British leaders agreed to a deal to cap duties on one hundred thousand UK-built cars annually to 10%. This tariff level took effect on 30th June, coinciding with the last day of the company's Q2.

Trade Deal Concerns

However, the manufacturer expressed reservations about the trade deal, arguing that the implementation of a American duty quota system adds further complexity and restricts the company's capacity to accurately forecast earnings for the current fiscal year-end and possibly quarterly from 2026 onwards.

Additional Challenges

The carmaker also cited reduced sales partly due to increased potential for supply chain pressures, particularly following a recent digital attack at a major UK automotive manufacturer.

The British car industry has been rattled this year by a cyber-attack on Jaguar Land Rover, which prompted a manufacturing halt.

Market Reaction

Shares in Aston Martin, listed on the LSE, dropped by more than 11% as trading opened on Monday at the start of the week before partially rebounding to stand 7 percent lower.

Aston Martin delivered 1,430 vehicles in its third quarter, falling short of earlier projections of being roughly equal to the one thousand six hundred forty-one vehicles delivered in the equivalent quarter last year.

Future Initiatives

The wobble in demand coincides with Aston Martin prepares to launch its flagship hypercar, a rear-engine supercar priced at around £743,000, which it expects will boost earnings. Shipments of the car are scheduled to start in the final quarter of its financial year, though a forecast of approximately one hundred fifty units in those three months was lower than previous expectations, due to engineering delays.

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

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

UK authorities was approached for comment.