"Aston Martin has reported a dramatic escalation in losses as Donald Trump's new tariffs on UK car imports and weakening demand from China batter the luxury carmaker's finances. The company posted a £112 million pre-tax loss in the three months to September, compared with just £12 million during the same period last year - an increase of more than 800 per cent. Revenue plunged 27 per cent to £285.2 million, reflecting what the company described as "extremely subdued" trading conditions in key export markets."
"The company blamed the deepening impact of US import tariffs, introduced by President Trump earlier this year, for much of the financial pain. The White House imposed 10 per cent duties on UK-made vehicles, a move that has particularly hurt Aston Martin, which relies heavily on the US as a core luxury market. The fallout from the US-China trade dispute has also weighed on global automotive demand. "This year has been marked by significant macroeconomic headwinds," said Adrian Hallmark, Aston Martin's recently appointed chief executive and former Bentley boss. "The sustained impact of US tariffs and weak demand in China have materially affected our performance.""
"Rival manufacturers have issued similar warnings. Mercedes-Benz this week reported a 31 per cent decline in profits, blaming the "market environment in China" and ongoing "tariff policies" in the US. The results are the latest setback for Aston Martin, which has faced repeated delays in launching new models as it battles to stabilise cashflow. Earlier this month, the company postponed deliveries of its Valhalla supercar, citing "production readiness adjustments.""
Aston Martin reported a £112 million pre-tax loss for the three months to September, up from £12 million a year earlier, with revenue falling 27% to £285.2 million. The company cited 10% US import duties on UK-made vehicles and weakened demand in China as major contributors to the decline. FTSE-listed shares fell nearly 6% after profit warnings. Delays to new model launches and postponed Valhalla deliveries have compounded cashflow pressures, and the company warned of potential supply-chain disruption. Rival manufacturers have reported similar headwinds from tariffs and the China market slowdown.
Read at Business Matters
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