Aston Martin, a prominent luxury carmaker, has announced its expectations of steep losses this year and has adjusted its production forecasts in response to weakening global demand and the impact of US trade tariffs. In a statement released on Monday, the British company revealed that the tariffs and broader economic pressures have significantly affected their sales in North America and the Asia Pacific region, resulting in the need for a change in their guidance. As a result, they now anticipate underlying losses to exceed £110 million for the full year, with earnings expected to fall to the lower end of analyst expectations.
In light of these challenges, Aston Martin is urging the Labour government to take a more active role in supporting small-volume vehicle manufacturers. The company has expressed concern over the added complexity brought on by US tariffs and is calling for government intervention to assist UK carmakers.
Despite the setbacks, Aston Martin has confirmed that deliveries of its plug-in hybrid Valhalla model will commence in the final quarter of 2025, alongside the launch of the new Vantage S and DBX S. However, their initial projections have been revised as they now expect to deliver only around 150 Valhallas during this period. Additionally, they have warned of potential delays if the ongoing US federal government shutdown disrupts certification procedures.
The company has also revised its wholesale vehicle volume forecast, expecting a mid-to-high single-digit decrease compared to last year’s total of 6,030 units. In the third quarter, they delivered 1,430 vehicles, down from 1,641 in the same period last year, citing weaker demand in key markets and the continued impact of tariffs.
Aston Martin has also highlighted the potential for disruption caused by the recent cyberattack on Jaguar Land Rover, which has affected suppliers across the UK automotive sector. In response to the challenging environment, the company has reduced its capital expenditure forecast for the year from £400 million to £375 million and plans to review its future product development cycle to decrease costs.
In light of these developments, Aston Martin’s stock has fallen 7.9 percent to 74.9p in early trading on Monday. Over the past year, the stock has lost nearly a third of its value and more than 80 percent over the past five years.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, commented on the situation, saying “volumes remain the sticking point” and despite the introduction of new models, sales are not reaching the levels needed for profitability. He also noted that the company is taking measures to reduce costs and delay spending, but the road to recovery looks uncertain.
This news has been distributed by pressat.co.uk.
