The impact of the US tariff quota system has been especially disruptive, restricting the number of UK-made cars allowed tariff-free into the US market. This has forced Aston Martin to cut its capital spending and withdraw its forecast for positive free cash flow in the second half of 2025. The company now expects vehicle volumes to fall by a mid-to-high single-digit percentage compared to last year.
Adding to the woes are changes to China's ultra-luxury car taxes and supply chain risks following a cyberattack on Jaguar Land Rover, a major UK automotive peer. Deliveries in the third quarter were below guidance, with approximately 1,430 units compared to 1,641 last year.
Aston Martin also revealed slight delays in delivering its Valhalla hypercar, now expected to start arriving in the final quarter of 2025 with around 150 units planned. Despite this, the company anticipates a smoother production schedule in 2026.
Shares of Aston Martin plunged by up to 11% on the news, extending a nearly 30% decline over the past year, fueled by ongoing market uncertainties and trade tensions. The company is actively seeking support from the UK government to help small-volume car manufacturers weather these challenges.
Aston Martin executives have launched an immediate review of expenditures and cost structures to adapt to the difficult economic conditions. The luxury brand remains optimistic about improving profitability and cash flow by 2026 through cost reductions and accelerating the rollout of new models.
