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Aston Martin has blamed a profit warning to US-imposed tariffs, as it calling on the British authorities for more proactive support.

This manufacturer, which builds its vehicles in factories across England and Wales, lowered its earnings forecast on Monday, marking the another revision this year. It now anticipates deeper losses than the previously projected £110m shortfall.

Seeking Government Support

The carmaker voiced concerns with the UK government, telling investors that despite having engaged with representatives from both the UK and US, it had positive discussions directly with the US administration but needed greater initiative from British officials.

It urged British authorities to protect the interests of small-volume manufacturers like Aston Martin, which create numerous employment opportunities and add value to regional finances and the broader UK automotive supply chain.

Global Trade Effects

The US President has shaken the global economy with a trade war this year, significantly affecting the automotive industry through the introduction of a 25 percent duty on April 3, in addition to an existing 2.5 percent charge.

During May, American and British leaders reached a agreement to limit duties on one hundred thousand British-made vehicles annually to 10 percent. This rate took effect on 30th June, coinciding with the final day of Aston Martin's second financial quarter.

Trade Deal Concerns

However, the manufacturer expressed reservations about the trade deal, arguing that the implementation of a US tariff quota mechanism adds additional complications and limits the company's ability to precisely predict earnings for this financial year end and potentially quarterly from 2026 onwards.

Additional Challenges

Aston Martin also cited reduced sales partially because of increased potential for logistical challenges, particularly following a recent cyber incident at a major UK automotive manufacturer.

UK automotive sector has been rattled this year by a digital breach on the country's largest automotive employer, which led to a production freeze.

Financial Response

Stock in the company, listed on the LSE, dropped by over 11 percent as markets 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 roughly equal to the 1,641 vehicles sold in the equivalent quarter last year.

Future Initiatives

Decline in demand coincides with Aston Martin gears up to release its flagship hypercar, a rear-engine hypercar costing approximately £743,000, which it expects will increase earnings. 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 lower than earlier estimates, reflecting technical setbacks.

The brand, famous 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 lower capital investment in engineering and development versus earlier forecasts of approximately £2 billion between its 2025 to 2029 financial years.

Aston Martin also told shareholders that it does not anticipate to achieve positive free cash flow for the second half of its present fiscal year.

The government was contacted for a statement.