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The automaker has attributed an earnings downgrade to Donald Trump's trade duties, while simultaneously calling on the UK government for greater proactive support.

This manufacturer, producing its cars in Warwickshire and south Wales, lowered its earnings forecast on Monday, representing the another downgrade in the current year. It now anticipates deeper losses than the previously projected £110 million shortfall.

Requesting Government Backing

Aston Martin expressed frustration with the UK government, informing investors that while it has communicated with representatives on both sides, it had positive discussions with the American government but needed greater initiative from British officials.

The company called on British authorities to protect the needs of small-volume manufacturers such as itself, which create thousands of jobs and add value to regional finances and the broader UK automotive supply chain.

Global Trade Effects

Trump has shaken the worldwide markets with a trade war this year, significantly affecting the automotive industry through the introduction of a 25 percent duty on April 3, on top of an existing 2.5% levy.

During May, the US president and Keir Starmer reached a agreement to cap tariffs on 100,000 British-made vehicles annually to 10 percent. This tariff level came into force on June 30, aligning with the last day of Aston Martin's Q2.

Agreement Concerns

Nonetheless, Aston Martin expressed reservations about the trade deal, arguing that the introduction of a American duty quota system introduces further complexity and restricts the group's ability to accurately forecast earnings for this financial year end and possibly each quarter starting in 2026.

Additional Challenges

The carmaker also cited reduced sales partially because of increased potential for logistical challenges, especially after a recent digital attack at a major UK automotive manufacturer.

UK automotive sector has been shaken this year by a digital breach on Jaguar Land Rover, which prompted a production freeze.

Financial Reaction

Stock in the company, listed on the LSE, fell by over 11 percent as trading opened on Monday at the start of the week before recovering some ground to stand down 7%.

Aston Martin delivered 1,430 vehicles in its Q3, missing previous guidance of being broadly similar to the 1,641 cars delivered in the equivalent quarter the previous year.

Future Plans

Decline in sales coincides with the manufacturer gears up to release its flagship hypercar, a rear-engine hypercar costing approximately £743,000, which it expects will increase profits. Deliveries of the car are scheduled to begin in the last quarter of its fiscal year, although a projection of approximately one hundred fifty units in those final quarter was lower than earlier estimates, reflecting technical setbacks.

Aston Martin, famous for its roles in the 007 movie series, has initiated a review of its future cost and investment strategy, which it indicated would likely lead to lower capital investment in engineering and development versus previous guidance of approximately £2 billion between its 2025 to 2029 financial years.

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

The government was approached for a statement.