Aston Martin is limiting exports to the US after President Donald Trump 's trade tariffs struck a major blow to European and other global automakers last month. Global car makers have been hit hard by Trump's 25 per cent tariffs on all imported vehicles and foreign-made auto parts, though some of those levies were eased on Tuesday.
Aston Martin revised down sales its targets slightly in April as Trump’s liberation day announcement rocked global markets and sent shares in a string of car makers spiralling. Adrian Hallmark, Aston Martin's chief executive, said on Wednesday that the group was 'carefully monitoring the evolving' situation and curbing expert while leveraging the stock held by its US dealers.
He added: 'We remain vigilant in monitoring events and will respond to changes in the operating environment as they materialise.' Aston Martin is among other European car manufacturers who have seen their shares slide in value in recent months over concerns about the potential impact of tariffs on demand for their vehicles in the US.
The group said: 'Whilst potential ramifications on the global economy from the recently announced US tariffs remain uncertain, Aston Martin still expects to make significant improvements across all key financial performance metrics in 2025, compared to the prior year.' Aston Martin reported a narrower-than-expected first-quarter loss on lower expenses and higher average prices.
The company reported an adjusted pre-tax loss of £79.8million for the three-months ending 31 March, against a loss of £110.5million a year ago, and lower than analysts' average consensus estimate of £89million. Its operating loss for the period came in at £67.3million in the three months ending 31 March, 15 per cent higher than a year ago. On an adjusted basis, the company's earnings before interest and taxation reached £64.5million, down 13 per cent year-on-year.
Aston Martin's revenue fell 13 per cent to £233.8million, amid a one per cent rise in wholesale volumes to £950million. The group said it expects to deliver a 'significantly stronger' second half performance compared with the year prior, driven by deliveries of its Valhalla model. Hallmark said: 'As guided, Q1 wholesale volumes were in line with the prior year and retail volumes materially outpaced wholesales, reflecting our disciplined approach to production and stock optimisation. 'Core average selling price increased by 10 per cent, demonstrating the positive impact of our recently launched range of ultra-luxury high performance models.'
In November, Aston Martin said it was looking to raise cash as it issued its second profit warning in two months. To boost its finances, the car maker has said it would issue new shares and debt totalling £210million. In February, Aston Martin announced plans to cut 5 per cent of its workforce after losses widened by a fifth last year and it sold fewer cars than in 2023. In February, the luxury car maker highlighted a string of supply chain issues and production delays as it told shareholders it would cull 170 jobs as part of a cost-cutting plan. Aston Martin shares rose 4.08 per cent or 2.85p to 72.75p on Wednesday, having fallen over 50 per cent in the last year.
Adam Vettese, a market analyst at eToro, said: 'The firm has had no choice but to overhaul production and cost controls, having previously been burning through cash while the stock price remained in free fall. 'Although there is still a very long way to go, this morning's beat will be welcomed by investors. 'There are issues that still remain. Tariff policies in the US will be a disappointment not only to anyone across the pond who would like the same set of wheels as James Bond, but also to the company as it puts a key market at risk.'
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