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Aston Martin has blamed an earnings downgrade to US-imposed trade duties, as it urging the British authorities for more active assistance.

The company, producing its cars in Warwickshire and south Wales, revised its profit outlook on Monday, marking the another revision in the current year. It now anticipates deeper losses than the previously projected £110m shortfall.

Requesting Official Backing

The carmaker voiced concerns with the UK government, telling investors that despite having engaged with representatives on both sides, it had productive talks directly with the US administration but required greater initiative from UK ministers.

The company called on UK officials to safeguard the needs of niche automakers like Aston Martin, which create numerous employment opportunities and contribute to regional finances and the broader UK automotive supply chain.

International Commerce Effects

The US President has shaken the global economy with a trade war this year, heavily impacting the automotive industry through the introduction 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 cap tariffs on 100,000 UK-built cars annually to 10 percent. This rate came into force on 30th June, coinciding with the last day of Aston Martin's Q2.

Trade Deal Concerns

Nonetheless, Aston Martin criticised the bilateral agreement, arguing that the introduction of a US tariff quota mechanism introduces further complexity and limits the company's capacity to accurately forecast financial performance for this financial year end and potentially each quarter starting in 2026.

Additional Factors

The carmaker also cited weaker demand partly due to increased potential for supply chain pressures, especially following a recent cyber incident at a leading British car producer.

UK automotive sector has been shaken this year by a digital breach on Jaguar Land Rover, which led to a manufacturing halt.

Market Response

Shares in the company, traded on the London Stock Exchange, dropped by more than 11% as trading opened on Monday morning before partially rebounding to stand down 7%.

Aston Martin sold 1,430 vehicles in its Q3, falling short of earlier projections of being broadly similar to the one thousand six hundred forty-one vehicles sold in the equivalent quarter the previous year.

Future Initiatives

The wobble in demand comes as Aston Martin prepares to launch its Valhalla, a mid-engine supercar priced at approximately $1 million, which it expects will boost earnings. Deliveries of the car are expected to start in the last quarter of its financial year, although a forecast of about 150 units in those final quarter was below previous expectations, due to technical setbacks.

Aston Martin, well-known for its roles in James Bond films, has started a review of its upcoming expenditure and investment strategy, which it indicated would probably lead to lower spending in engineering and development compared with earlier forecasts of approximately £2 billion between its 2025 to 2029 financial years.

Aston Martin also informed investors that it does not anticipate to generate positive free cash flow for the latter six months of its present fiscal year.

UK authorities was approached for comment.