Tuesday, 02 January 2024 12:17 GMT

Aston Martin Warns of Tough Challenges Amid Tariffs


(MENAFN) Aston Martin, the iconic British high-end automobile manufacturer, experienced a 6% drop in its share value on Monday.

This decline followed the company’s issuance of a cautious outlook, citing obstacles within the global automotive sector and growing uncertainty around international trade tariffs.

In a released statement, the automaker disclosed that it foresees its wholesale shipments for 2025 decreasing by a “mid-high single-digit percentage” relative to the 6,030 vehicles delivered in the prior year.

This forecast reflects concerns about reduced market demand and potential external pressures affecting the business.

Furthermore, Aston Martin revealed that it has begun an immediate reassessment of upcoming expenditures and investment plans.

The company also stated that it no longer expects to generate positive free cash flow in the latter half of the current year.

Projections from the firm indicate that market analysts were expecting the company to report an earnings before interest and taxes (EBIT) shortfall of £110 million ($147.8 million) for 2025.
Aston Martin emphasized in its communication that "The global macroeconomic environment facing the industry remains challenging."

It also pointed out that this situation includes unpredictability linked to “uncertainties over the economic impact from US tariffs and the implementation of the quota mechanism,” alongside shifts in “China's ultra-luxury car taxes” and a heightened risk of “supply chain pressures.”

These issues have been compounded by a “recent cyber incident at a major UK automotive manufacturer,” which has added further strain on logistical operations.

The company also warned that for British carmakers, the new US tariff quota system has made strategic planning more difficult.

As a result, Aston Martin is now less able to offer concrete guidance for its financial results by year-end and may face challenges in delivering consistent quarterly forecasts beginning in 2026.

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