Aston Martin Issues Profit Warning Amid Sales Decline and Tariff Impact
Luxury car manufacturer Aston Martin has issued a profit warning following a decline in sales during the latest financial year, attributing the drop to the impact of US tariffs imposed by President Donald Trump.
Key Financial Challenges
The British automaker reported a decline in wholesale volumes in the third quarter of 2025, delivering 1,430 units compared to 1,641 units in the same period last year. The company cited weaker demand in North America and the impact of a 25% tariff on imported vehicles as the primary reasons for the decline.
Tariff Impact and Government Relations
Although the UK secured a trade deal reducing the tariff to 10%, manufacturers still face challenges due to a cap of 100K vehicles imported from the UK to the US. Any vehicles exceeding this limit face an effective tariff rate of 27.5%.
Aston Martin stated that it is actively engaging with both the US and UK governments to seek greater clarity and support. While the company reported positive dialogue with the US government, it called for more proactive support from the UK government to protect small-volume manufacturers.
New Model Deliveries
Despite the financial challenges, Aston Martin continues to roll out new models. The company is currently delivering the new Vanquish Volante and expects deliveries of the Vantage S and DBX S to begin in the final quarter of the year.
The highly anticipated hybrid Valhalla model is also set to enter production, with around 150 deliveries expected by year-end. The Valhalla, Aston Martin’s first mid-engine plug-in hybrid supercar, boasts impressive specifications:
- Top speed: 217 mph
- Power: 1,079 horsepower
- 0-60 mph time: 2.5 seconds
- Limited production run: 999 units
- Price: approximately £850,000
Market Reaction
Shares in Aston Martin experienced a significant drop of over 11% at the opening of trading today, though they have since partially recovered. The company remains focused on maintaining a disciplined approach to its operations while navigating the current economic challenges.
