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The automaker has attributed an earnings downgrade to US-imposed trade duties, as it urging the UK government for more active assistance.

This manufacturer, which builds its vehicles in factories across England and Wales, lowered its profit outlook on Monday, representing the another downgrade in the current year. The firm expects deeper losses than the earlier estimated £110 million shortfall.

Requesting Government Support

Aston Martin expressed frustration with the UK government, informing shareholders that despite having engaged with officials on both sides, it had positive discussions with the American government but required greater initiative from UK ministers.

The company called on British authorities to safeguard the needs of niche automakers like Aston Martin, which provide numerous employment opportunities and add value to local economies and the broader UK automotive supply chain.

International Commerce Effects

The US President has shaken the worldwide markets with a trade war this year, significantly affecting the car sector through the imposition of a 25% tariff on April 3, in addition to an existing 2.5 percent charge.

In May, American and British leaders agreed to a deal to limit tariffs on 100,000 British-made cars annually to 10%. This rate took effect on 30th June, coinciding with the last day of Aston Martin's Q2.

Agreement Concerns

However, Aston Martin expressed reservations about the trade deal, arguing that the implementation of a American duty quota system introduces additional complications and restricts the company's ability to precisely predict earnings for the current fiscal year-end and potentially each quarter starting in 2026.

Other Factors

Aston Martin also pointed to weaker demand partly due to 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 cyber-attack on Jaguar Land Rover, which led to a manufacturing halt.

Financial Reaction

Stock in Aston Martin, traded on the LSE, fell by over 11 percent as trading opened on Monday at the start of the week before recovering some ground to be 7 percent lower.

Aston Martin sold one thousand four hundred thirty vehicles in its third quarter, falling short of previous guidance of being broadly similar to the 1,641 vehicles sold in the same period the previous year.

Future Initiatives

The wobble in sales coincides with Aston Martin prepares to launch its Valhalla, a rear-engine hypercar priced at around £743,000, which it expects will increase profits. Deliveries of the car are scheduled to start in the last quarter of its fiscal year, although a forecast of about 150 deliveries in those three months was below earlier estimates, due to engineering delays.

The brand, well-known for its appearances in the 007 movie series, has started a evaluation of its future cost and investment strategy, which it indicated would likely result in reduced spending in engineering and development compared with earlier forecasts of approximately £2 billion between its 2025 and 2029 fiscal years.

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

UK authorities was approached for comment.