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Aston Martin has attributed a profit warning to US-imposed trade duties, while simultaneously calling on the British authorities for more active assistance.

This manufacturer, which builds its vehicles in Warwickshire and south Wales, revised its earnings forecast on Monday, marking the another revision in the current year. It now anticipates deeper losses than the previously projected £110 million deficit.

Requesting Official Backing

Aston Martin expressed frustration with the British leadership, informing shareholders that despite having engaged with representatives from both the UK and US, it had productive talks with the American government but required greater initiative from British officials.

It urged UK officials to safeguard the needs of small-volume manufacturers such as itself, which provide numerous employment opportunities and add value to local economies and the wider British car industry network.

Global Trade Effects

The US President has disrupted the global economy with a trade war this year, significantly affecting the automotive industry through the imposition of a 25% tariff on April 3, in addition to an previous 2.5 percent charge.

During May, American and British leaders reached a deal to limit duties on 100,000 British-made cars annually to 10%. This tariff level took effect on June 30, aligning with the final day of Aston Martin's Q2.

Agreement Criticism

Nonetheless, Aston Martin expressed reservations about the trade deal, arguing that the implementation of a US tariff quota mechanism adds further complexity and restricts the group's ability to precisely predict financial performance for the current fiscal year-end and possibly each quarter starting in 2026.

Additional Factors

Aston Martin also cited reduced sales partly due to greater likelihood for supply chain pressures, especially after a recent digital attack at a leading British car producer.

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

Financial Reaction

Shares in the company, listed on the LSE, dropped 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 1,430 vehicles in its Q3, falling short of previous guidance of being broadly similar to the one thousand six hundred forty-one vehicles delivered in the same period last year.

Upcoming Initiatives

The wobble in sales coincides with Aston Martin prepares to launch its flagship hypercar, a mid-engine supercar costing approximately $1 million, which it expects will increase profits. Deliveries of the vehicle are scheduled to start in the final quarter of its financial year, although a projection of approximately one hundred fifty units in those final quarter was lower than previous expectations, due to engineering delays.

Aston Martin, well-known for its roles in the 007 movie series, has initiated a evaluation of its upcoming expenditure and investment strategy, which it indicated would probably result in reduced spending in R&D versus previous guidance of approximately £2 billion between its 2025 and 2029 financial years.

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

UK authorities was contacted for a statement.