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Aston Martin has blamed an earnings downgrade to US-imposed trade duties, as it urging the British authorities for more proactive support.

The company, which builds its vehicles in Warwickshire and south Wales, revised its earnings forecast on Monday, representing the another revision this year. It now anticipates deeper losses than the earlier estimated £110 million deficit.

Requesting Official Backing

Aston Martin voiced concerns with the UK government, telling shareholders that despite having communicated with representatives from both the UK and US, it had productive talks directly with the US administration but required 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 contribute to regional finances and the broader UK automotive supply chain.

International Commerce Effects

Trump has shaken the worldwide markets with a tariff conflict this year, significantly affecting the automotive industry through the imposition of a 25% tariff on 3rd April, in addition to an existing 2.5% levy.

During May, American and British leaders reached a deal to cap duties on 100,000 British-made cars per year to 10 percent. This tariff level came into force on 30th June, coinciding with the final day of Aston Martin's Q2.

Agreement Concerns

However, the manufacturer expressed reservations about the bilateral agreement, arguing that the introduction of a US tariff quota mechanism adds additional complications and limits the group's capacity to accurately forecast financial performance for the current fiscal year-end and potentially quarterly from 2026 onwards.

Additional Factors

Aston Martin also cited weaker demand partly due to greater likelihood for supply chain pressures, especially following a recent cyber incident at a leading British car producer.

The British car industry has been rattled this year by a cyber-attack on the country's largest automotive employer, which prompted a manufacturing halt.

Financial Response

Stock in Aston Martin, traded on the London Stock Exchange, fell by over 11 percent as trading opened on Monday at the start of the week before partially rebounding to be down 7%.

The group sold one thousand four hundred thirty vehicles in its Q3, falling short of previous guidance of being roughly equal to the one thousand six hundred forty-one vehicles sold in the same period the previous year.

Future Plans

The wobble in sales comes as Aston Martin gears up to release its Valhalla, a mid-engine hypercar priced at approximately £743,000, which it expects will increase profits. Deliveries of the car are expected to begin in the last quarter of its fiscal year, though a forecast of about 150 units in those final quarter was below previous expectations, due to technical setbacks.

The brand, well-known for its roles in James Bond films, has started a review of its upcoming expenditure and investment strategy, which it indicated would likely result in reduced capital investment in R&D versus previous guidance of about £2bn between its 2025 and 2029 financial years.

The company also informed investors that it does not anticipate to generate positive free cash flow for the latter six months of its present fiscal year.

The government was contacted for a statement.