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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 greater proactive support.

This manufacturer, which builds its vehicles in Warwickshire and south Wales, lowered its earnings forecast on Monday, marking the second such downgrade in the current year. It now anticipates deeper losses than the earlier estimated £110 million shortfall.

Requesting Government Backing

The carmaker expressed frustration with the British leadership, telling investors that despite having engaged with officials from both the UK and US, it had productive talks directly with the US administration but needed greater initiative from British officials.

The company called on UK officials to safeguard the interests of niche automakers such as itself, which provide numerous employment opportunities and add value to regional finances and the wider British car industry network.

Global Trade Effects

The US President has disrupted the global economy with a tariff conflict this year, heavily impacting the automotive industry through the introduction of a 25% tariff on 3rd April, on top of an previous 2.5 percent charge.

In May, the US president and Keir Starmer agreed to a agreement to cap duties on 100,000 British-made cars per year to 10 percent. This rate came into force on June 30, coinciding with the last day of Aston Martin's Q2.

Trade Deal Concerns

Nonetheless, Aston Martin criticised the trade deal, stating that the implementation of a US tariff quota mechanism introduces additional complications and limits the company's ability to accurately forecast financial performance for the current fiscal year-end and possibly quarterly from 2026 onwards.

Additional Factors

The carmaker also pointed to weaker demand partially because of increased potential for logistical challenges, especially after a recent cyber incident at a leading British car producer.

The British car industry has been shaken this year by a digital breach on the country's largest automotive employer, which led to a manufacturing halt.

Financial Reaction

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

Aston Martin sold one thousand four hundred thirty cars in its Q3, missing earlier projections of being broadly similar to the 1,641 vehicles delivered in the equivalent quarter last year.

Upcoming Plans

Decline in sales coincides with Aston Martin gears up to release its Valhalla, a mid-engine hypercar priced at around £743,000, which it hopes will increase profits. Shipments of the car are expected to start in the final quarter of its financial year, although a projection of about 150 units in those final quarter was lower than earlier estimates, reflecting technical setbacks.

The brand, well-known for its appearances in James Bond films, has initiated a review of its future cost and investment strategy, which it said would probably lead to reduced spending in R&D versus earlier forecasts of about £2bn between its 2025 and 2029 fiscal years.

The company also told shareholders that it no longer expects to achieve positive free cash flow for the second half of its present fiscal year.

The government was contacted for a statement.