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The automaker has attributed an earnings downgrade to US-imposed trade duties, while simultaneously urging the UK government for greater active assistance.

This manufacturer, producing its cars in Warwickshire and south Wales, lowered its earnings forecast on Monday, representing the another revision in the current year. The firm expects deeper losses than the previously projected £110m deficit.

Requesting Government Support

Aston Martin voiced concerns with the British leadership, telling shareholders that while it has engaged with officials from both the UK and US, it had positive discussions directly with the US administration but required greater initiative from UK ministers.

The company called on UK officials to safeguard the interests of niche automakers such as itself, which create numerous employment opportunities and contribute to local economies and the broader UK automotive supply chain.

Global Trade Effects

The US President has disrupted the worldwide markets with a trade war this year, significantly affecting the car sector through the imposition of a 25% tariff on 3rd April, on top of an existing 2.5% levy.

During May, American and British leaders agreed to a agreement to limit tariffs on 100,000 UK-built vehicles per year to 10 percent. This tariff level came into force on 30th June, coinciding with the last day of the company's Q2.

Agreement Concerns

Nonetheless, Aston Martin expressed reservations about the trade deal, stating that the implementation of a American duty quota system adds further complexity and limits the group's capacity to accurately forecast financial performance for this financial year end and possibly each quarter starting in 2026.

Other Factors

Aston Martin also pointed to reduced sales partly due to increased potential for logistical challenges, particularly following a recent digital attack at a major UK automotive manufacturer.

The British car industry has been shaken this year by a cyber-attack on the country's largest automotive employer, which prompted a production freeze.

Financial Reaction

Shares in the company, listed on the LSE, fell by over 11 percent as markets opened on Monday at the start of the week before recovering some ground to be down 7%.

Aston Martin sold 1,430 vehicles in its third quarter, falling short of earlier projections of being roughly equal to the 1,641 cars delivered in the same period last year.

Future Plans

Decline in sales coincides with Aston Martin gears up to release its Valhalla, a mid-engine hypercar priced at around £743,000, which it hopes will boost profits. Deliveries of the vehicle are expected to start in the last quarter of its fiscal year, though a projection of about 150 units in those final quarter was lower than earlier estimates, due to engineering delays.

The brand, well-known for its appearances in James Bond films, has started a evaluation of its upcoming expenditure and investment strategy, which it said would probably result in reduced capital investment in engineering and development versus earlier forecasts of about £2bn between its 2025 to 2029 fiscal years.

The company also told shareholders that it no longer expects to achieve positive free cash flow for the second half of its present fiscal year.

The government was approached for comment.