London (AFP) – British luxury carmaker Aston Martin Lagonda on Wednesday revised down its full-year outlook as US President Donald Trump’s tariffs weigh on operations. The group narrowed its losses after tax to £148.8 million ($198.8 million) in the first half of the year, from £207.8 million in the period a year earlier. However, it expects full-year adjusted underlying earnings to improve only “towards breakeven,” having previously forecast growth. Revenues dropped 25 percent to £454.4 million in the first six months of the year. Shares in Aston Martin slid more than five percent on London’s second-tier FTSE 250.
Automakers have been among the companies hit hardest by Trump’s tariffs onslaught as he tries to bring auto production back to the United States. Aston Martin limited imports to the United States in April and May while awaiting a trade agreement between London and Washington. It resumed shipments in June after the deal slashed tariffs on UK car exports to 10 percent from 27.5 percent, on a limit of 100,000 vehicles annually.
Aston Martin’s chief executive Adrian Hallmark on Wednesday urged the UK government “to improve the quota mechanism to ensure fair access for the whole UK car industry to the 10 percent rate.” The company added that it expected to sell its minority stake in the Aston Martin Aramco Formula One team for £110 million in the third quarter.
“Aston Martin has spent decades proving that it is easier to make cars than money,” said Steve Clayton, head of equity funds at Hargreaves Lansdown. He added that “the group’s operational performance should benefit from their ongoing restructuring efforts.” Aston Martin said in February that it would cut about five percent of its workforce as weak Chinese demand contributed to widened losses in 2024.
© 2024 AFP
