Aston Martin, the iconic British luxury carmaker known for its association with James Bond films, has issued a fresh profit warning, citing ongoing challenges in the global macroeconomic environment. The announcement has caused the company’s shares to fall as much as 10% on Monday, adding to a year-to-date dip of nearly 30%.
Tariffs and Economic Pressures
The company highlighted uncertainties stemming from U.S. tariffs and the complexities of the recently implemented quota mechanism under the U.S.-U.K. trade deal. This agreement, which limits tariffs on 100,000 British-made cars annually to 10%, has added a layer of unpredictability to Aston Martin’s financial forecasting.
In addition to tariff-related challenges, the automaker pointed to changing ultra-luxury car tax policies in China and the potential for supply chain disruptions as further factors impacting its outlook.
“The global macroeconomic environment facing the industry remains challenging,” Aston Martin said in a statement on Monday. “This includes uncertainties over the economic impact from U.S. tariffs and the implementation of the quota mechanism.”
Decline in Wholesale Volumes and Cash Flow Woes
Aston Martin now expects its wholesale volumes for 2025 to decline by a “mid-high single-digit percentage” compared to the 6,030 units sold in 2024. Compounding the issue, the company no longer anticipates generating positive free cash flow in the second half of the year.
As a result, Aston Martin has initiated an immediate review of its future cost and capital expenditure plans to mitigate financial pressures.
Analyst Expectations and Market Reaction
Analysts had previously estimated that Aston Martin would report an EBIT (earnings before interest and taxes) loss of £110 million ($147.8 million) for the year. The latest announcement has only deepened concerns about the company’s financial health, as shares were trading 7% lower by midday in London.
Calls for Government Support
Aston Martin has called for “more proactive support” from U.K. lawmakers to protect small-volume manufacturers, which play a significant role in providing jobs and supporting local economies. While the company noted progress in discussions with the Trump administration in the U.S., it urged the U.K. government to do more to shield the sector from the adverse impacts of tariffs and trade barriers.
In response, a U.K. government spokesperson emphasized that the automotive sector remains a priority in its trade agreements. “We remain the only country to have a tariff rate as low as 10% for cars, protecting thousands of jobs in the sector,” the spokesperson said.
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