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The automaker has attributed an earnings downgrade to Donald Trump's trade duties, as it urging the UK government for greater active assistance.

This manufacturer, producing its cars in factories across England and Wales, revised its earnings forecast on Monday, marking the another downgrade this year. It now anticipates a larger loss than the previously projected £110m shortfall.

Seeking Official Support

The carmaker 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 with the US administration but required more proactive support from UK ministers.

The company called on British authorities to safeguard the interests of small-volume manufacturers such as itself, which create thousands of jobs and contribute to regional finances and the wider British car industry network.

Global Trade Impact

Trump has disrupted the global economy with a trade war this year, significantly affecting the automotive industry through the introduction of a 25 percent duty on April 3, on top of an existing 2.5% levy.

During May, the US president and Keir Starmer reached a deal to cap duties on 100,000 British-made vehicles annually to 10%. This tariff level took effect on 30th June, coinciding with the final day of the company's second financial quarter.

Trade Deal Concerns

Nonetheless, the manufacturer expressed reservations about the trade deal, stating that the implementation of a US tariff quota mechanism adds additional complications and restricts the group's ability to precisely predict earnings for this financial year end and potentially quarterly from 2026 onwards.

Additional Challenges

Aston Martin also pointed to weaker demand partially because of increased potential for supply chain pressures, particularly following 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 prompted a manufacturing halt.

Financial Response

Stock in Aston Martin, listed on the London Stock Exchange, dropped by over 11 percent as markets opened on Monday at the start of the week before recovering some ground to stand down 7%.

Aston Martin delivered 1,430 cars in its Q3, missing previous guidance of being broadly similar to the 1,641 vehicles sold in the equivalent quarter the previous year.

Upcoming Initiatives

The wobble in demand coincides with Aston Martin gears up to release its flagship hypercar, a mid-engine hypercar costing around £743,000, which it expects will boost profits. Shipments of the car are expected to begin in the last quarter of its fiscal year, although a forecast of about 150 units in those three months was lower than earlier estimates, due to engineering delays.

The brand, well-known for its appearances in the 007 movie series, has initiated a review of its future cost and investment strategy, which it indicated would probably lead to lower capital investment in engineering and development compared with previous guidance of approximately £2 billion between its 2025 to 2029 financial years.

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

UK authorities was approached for a statement.