The Aston Martin DB12 Goldfinger Edition is currently being acquired by Burlington Arcade 007 in London, UK on October 29, 2024.
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Stocks Aston Martin After the British luxury carmaker issued a new profit warning, it fell by 10% on Monday morning, citing challenging industry outlook and uncertainty over tariffs.
Famous for both James Bond films and its role in the history of financial ups and downs, the company said it expects total wholesale volume to fall to a “medium single-digit percentage” in 2025 compared to 6,030 units last year.
Aston Martin also said it does not expect to generate positive free cash flow later this year, and has begun an immediate review of future costs and capital expenditures.
Analysts were hoping to record a loss of £110 million ($147.8 million) in interest and tax (EBIT) loss (EBIT). According to estimates compiled by the company.
Aston Martin
“The global macroeconomic environment facing the industry remains challenging,” the automaker said in a release Monday. “This includes the economic impacts from US tariffs and the implementation of quarter mechanisms, changes to China’s ultra-luxurious automobile tax, and uncertainty regarding the increased potential for supply chain pressure.”
Aston Martin stock was trading about 7% lower at 11:44am London time (6:44am ET). Inventory has been declining by about 29% since the start of the year.
“More aggressive support”
US President Donald Trump has shaken the global economy this year by imposing tariffs on goods that reach the US from countries around the world.
The automotive sector is seen as sharp and vulnerable to tariffs given its high supply chain globalization and its heavily dependent on manufacturing operations across North America.
Under the US-UK trade agreement agreed in May, the two countries signed a contract to limit tariffs on 100,000 British-made cars to 10% per year.
Aston Martin said Monday that the quarter mechanism “adds further degree of complexity and limits the group’s capabilities at the end of this fiscal year and potentially every quarter since 2026.”
Noting that “positive dialogue” on the issue was achieved directly in the Trump administration, the company said it continues to be involved with both the White House and the UK government on tariffs “to ensure greater clarity and certainty.”
However, “more aggressive support” was sought from British lawmakers, but it urges them to protect the interests of small manufacturers like Aston Martin, which offers thousands of jobs, making important contributions to the local economy and the UK’s automotive supply chain.”
In response, a UK government spokesperson said the country’s automobile sector was “a top priority in our landmark trade agreement” with the US.
“We are the only country with a low 10% tariff rate in our cars, protecting thousands of jobs in the sector,” they added.
“We are working with the industry to ensure that the UK can remain the biggest destination for investment in automotive manufacturing through planning change, while effectively and fairly leveraging quotas.”
