Luxury carmaker blames US tariffs and slashes investment plans by £300m
The firm said its quarterly operating loss more than doubled to £56.1 million for the period
Luxury car manufacturer Aston Martin has significantly scaled back its investment plans as it grapples with mounting losses and challenging market conditions.
The British firm announced a reduction in its five-year investment commitment from £2 billion to £1.7 billion, alongside a comprehensive review of its costs and capital expenditure.
This year, the company, famed for its association with James Bond, is now allocating £350 million to operations, a further cut from earlier projections of £375 million and an initial £400 million target.
The move comes as Aston Martin faces pressure from US tariffs and subdued demand in the Chinese market, contributing to a sharp decline in sales.
Revenues for the quarter ending 30 September plummeted by 27 per cent to £285.2 million compared to the previous year.
This downturn was primarily driven by a 13 per cent fall in wholesale volumes, with only 1,430 vehicles sold during the period. In response, the luxury car maker is also re-evaluating its strategy for upcoming models.
The weakness was driven by “heightened challenges in the global macroeconomic environment” which weighed down on demand, as well as pressure from US tariffs.
Sales volumes were weaker than expected across “most regions” during the quarter, as it reported that UK sales volumes slid by 32 per cent.
Aston Martin said its quarterly operating loss more than doubled to £56.1 million for the period.
The firm pointed towards an improvement in performance for the final quarter of the year but stressed that there are continued challenges, including supply chain pressures linked to the cyber incident on rival Jaguar Land Rover.
Adrian Hallmark, Aston Martin chief executive, said: “This year has been marked by significant macroeconomic headwinds, particularly the sustained impact of US tariffs and weak demand in China.
“In response to these market dynamics, we have taken, and continue to take, proactive steps to strengthen our overall position.
“Work is under way to review our future product cycle plan with the aim of optimising costs and capital investment whilst continuing to deliver innovative, class leading products to meet customer demands and regulatory requirements.”
Major shareholder and executive chairman Lawrence Stroll said his commitment and confidence in the long-term prospects of the business are “unwavering”.