10:21 am, October 7, 2025
Aston Martin has told investors to prepare for massive losses amid supply chain issues and concerns over US tariffs.
The British marque says it expects to tumble into the red when it’s upcoming accounts are published, with bosses braced for underlying losses greater than £110m – which was the bottom of the previous expected range.
The warning marks the second downgrade to the luxury carmaker’s outlook since early July with the alert sending shares tumbling by as much as 11% at one stage in Monday morning trading.
In an announcement to shareholders, Aston Martin Lagonda admitted that wholesale volumes are expected to drop by a mid-high single-digit percentage due to ‘heightened challenges in the global macroeconomic environment, including the ongoing impact of tariffs’.
The situation has resulted in a weaker performance across North America and Asia with bosses now launching an ‘immediate’ review of costs and spending in light of the tougher trading.
The firm has also raised worries over how its own supply chain could be impacted by the crisis at JLR, following last month’s cyberattack.
A spokesman said: ‘The global macroeconomic environment facing the industry remains challenging.
‘This includes uncertainties over the economic impact from US tariffs and the implementation of the quota mechanism, changes to China’s ultra-luxury car taxes and the increased potential for supply chain pressures, particularly following the recent cyber incident at a major UK automotive manufacturer.’
Aston Martin has already seen shares come under pressure this year over concerns about the impact of US president Donald Trump’s tariff war.
The brand limited shipments to the US in the Q2 after Trump imposed a 25% tariff on car imports in April.
They then did not return until June, when the UK reached an agreement with the US for a lower 10% tariff on UK-made cars for the first 100,000 vehicles per manufacturer.
Anything above that threshold will be hit with a 27.5% duty, but Aston Martin said on Monday the tariffs were still having an impact on performance.
It said: ‘For UK automotive manufacturers, the introduction of a US tariff quota mechanism adds a further degree of complexity and limits the group’s ability to accurately forecast for this financial year end and, potentially, quarterly from 2026 onwards.
‘The group continues to engage with both the US and UK governments to secure greater clarity and certainty.
‘Whilst positive dialogue on this matter has been achieved directly with the US government, the company continues to seek more proactive support from the UK Government to protect the interests of small volume manufacturers, like Aston Martin, who provide thousands of jobs, making an important contribution to local economies and to the wider UK automotive supply chain.’
Aston now says that it hopes that profitability and free cash flow will ‘materially’ improve in 2025-26 as it cuts costs and ramps up delayed production of its Valhalla model – the group’s first plug-in hybrid mid-engine supercar.
