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The automaker has attributed an earnings downgrade to Donald Trump's tariffs, as it urging the UK government for more active assistance.

This manufacturer, producing its vehicles in factories across England and Wales, lowered its profit outlook on Monday, representing the another downgrade in the current year. It now anticipates deeper losses than the earlier estimated £110 million shortfall.

Requesting Government Support

Aston Martin voiced concerns with the British leadership, informing shareholders that while it has engaged with representatives on both sides, it had productive talks with the American government but required greater initiative from UK ministers.

The company called on British authorities to safeguard the interests of small-volume manufacturers like Aston Martin, which create numerous employment opportunities and add value to local economies and the wider British car industry network.

Global Trade Effects

Trump has shaken the global economy with a tariff conflict this year, significantly affecting the automotive industry through the introduction of a 25 percent duty on April 3, in addition to an previous 2.5 percent charge.

In May, American and British leaders agreed to a deal to cap tariffs on 100,000 UK-built vehicles per year to 10 percent. This tariff level came into force on 30th June, aligning with the final day of Aston Martin's Q2.

Trade Deal Concerns

However, the manufacturer criticised the bilateral agreement, stating that the implementation of a US tariff quota mechanism adds further complexity and restricts the group's capacity to accurately forecast earnings for the current fiscal year-end and possibly each quarter starting in 2026.

Additional Factors

Aston Martin also cited weaker demand partly due to greater likelihood for logistical challenges, particularly following a recent digital attack at a leading British car producer.

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

Financial Reaction

Shares in the company, listed on the LSE, fell by more than 11% as trading opened on Monday morning before partially rebounding to stand down 7%.

Aston Martin delivered one thousand four hundred thirty vehicles in its Q3, falling short of earlier projections of being broadly similar to the 1,641 vehicles delivered in the same period the previous year.

Future Initiatives

The wobble in sales coincides with the manufacturer gears up to release its Valhalla, a mid-engine supercar costing approximately $1 million, which it expects will boost earnings. Deliveries of the vehicle are scheduled to begin in the final quarter of its fiscal year, although a projection of about 150 units in those final quarter was lower than earlier estimates, reflecting technical setbacks.

Aston Martin, well-known for its roles in James Bond films, has initiated a evaluation of its future cost and spending plans, which it indicated would probably result in lower capital investment in engineering and development versus previous guidance of approximately £2 billion between its 2025 and 2029 fiscal years.

The company also informed investors that it does not anticipate to generate profitable cash generation for the second half of its present fiscal year.

The government was contacted for comment.