Aston Martin Lagonda has recently announced an expected underlying loss exceeding £110 million, a downgrade from earlier projections. The luxury car manufacturer attributes this financial forecast to several challenges, including tariffs imposed by the United States and supply chain disruptions stemming from a cyber-attack on Jaguar Land Rover.
In response to these pressures, Aston Martin has initiated a review of its costs and spending. This announcement has influenced the company’s share price, which fell by up to 11% during trading on Monday. The firm indicated that wholesale volumes are expected to decrease by a mid-to-high single-digit percentage. The firm noted a particularly weaker performance in North America and Asia, highlighting the broader impact of a challenging global economic environment.
In its statement, Aston Martin outlined concerns over the ongoing ramifications of U.S. tariffs, including complexities added by a new quota mechanism. After initially halting shipments to the U.S. in response to a 25% tariff on car imports, the company resumed shipments in June when an agreement was reached for a reduced 10% tariff on UK-made cars, applicable to the first 100,000 vehicles produced per manufacturer. However, vehicles exceeding this limit are subject to a 27.5% duty.
Despite recent challenges, Aston Martin is working with both U.S. and UK governments to seek clarity on tariffs. The company expressed hope for improved profitability and cash flow by fiscal year 2025-26, coinciding with the anticipated production scale-up of its Valhalla model, a plug-in hybrid supercar. The firm had previously laid off 170 employees following financial difficulties, and its half-year results for 2025 showed a decline in core profitability to £121 million, down from £99.8 million the previous year.
Source: https://www.bbc.com/news/articles/c5y5l6mv5geo?at_medium=RSS&at_campaign=rss