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Aston Martin has blamed a profit warning to US-imposed tariffs, as it urging the UK government for more active assistance.

The company, producing its cars in factories across England and Wales, revised its profit outlook on Monday, representing the another downgrade in the current year. The firm expects a larger loss than the previously projected £110 million shortfall.

Seeking Official Support

Aston Martin voiced concerns with the British leadership, telling investors that while it has communicated with officials from both the UK and US, it had productive talks with the American government but needed greater initiative from British officials.

It urged British authorities to protect the needs of niche automakers such as itself, which create numerous employment opportunities and add value to local economies and the broader UK automotive supply chain.

International Commerce Impact

The US President has disrupted the worldwide markets with a tariff conflict this year, heavily impacting the car sector through the introduction of a 25 percent duty on 3rd April, in addition to an previous 2.5% levy.

In May, American and British leaders reached a agreement to cap tariffs on one hundred thousand British-made vehicles per year to 10 percent. This rate came into force on 30th June, aligning with the final day of Aston Martin's second financial quarter.

Agreement Criticism

However, Aston Martin expressed reservations about the trade deal, arguing that the introduction of a American duty quota system adds further complexity and restricts the company's capacity to accurately forecast financial performance for the current fiscal year-end and possibly quarterly from 2026 onwards.

Additional Challenges

Aston Martin also cited weaker demand partially because of increased potential for logistical challenges, especially after a recent digital attack at a leading British car producer.

UK automotive sector has been shaken this year by a digital breach on the country's largest automotive employer, which led to a manufacturing halt.

Market Reaction

Stock in the company, listed on the London Stock Exchange, dropped by more than 11% as trading opened on Monday morning before partially rebounding to be 7 percent lower.

Aston Martin 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 cars sold in the same period the previous year.

Future Plans

The wobble in sales coincides with Aston Martin gears up to release its flagship hypercar, a mid-engine supercar costing approximately £743,000, which it expects will boost earnings. Shipments of the vehicle are expected to start in the final quarter of its fiscal year, although a forecast of approximately one hundred fifty units in those three months was below previous expectations, reflecting technical setbacks.

Aston Martin, well-known for its roles in James Bond films, has started a evaluation of its future cost and spending plans, which it indicated would likely result in reduced spending in R&D compared with earlier forecasts of approximately £2 billion between its 2025 to 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.

The government was approached for comment.