Aston Martin Lagonda Global Holdings Plc is reviewing plans for upcoming models to lower costs, with US tariffs hitting the British carmaker as its latest turnaround effort stalls.
The manufacturer is targeting a reduction in capital spending to £350 million ($463 million) this year, slightly below previous guidance. Aston Martin said Wednesday it’s taking actions related to its future product plans that will help it cut spending by £300 million over five years, as it tries to end years of losses.
Aston Martin shares fell as much as 7.8% in early London trading before recovering slightly, as the automaker also reported another deep quarterly loss and disappointing revenue. The stock is down 40% this year.
The storied carmaker has tried to engineer a turnaround since 2020 when it was rescued by Lawrence Stroll, but has repeatedly tapped investors for more funds and cut guidance, most recently earlier this month. The Canadian billionaire last year brought in former Bentley Motors Ltd. boss Adrian Hallmark to help revive the debt-laden company with a focus on making it leaner. But the industry veteran has faced similar struggles, with higher US tariffs weighing on profitability.
“This year has been marked by significant macroeconomic headwinds, particularly the sustained impact of US tariffs and weak demand in China,” Hallmark said in a statement.
Aston Martin doesn’t make any vehicles in the US, its largest market. Under a deal struck between the US and UK earlier this year, British carmakers will pay 10% tariffs on vehicles exported to the US. That rate is much less than the previous 27.5% duty but still much higher than the 2.5% levy before President Donald Trump took office.
In its recent profit warning, Aston Martin said it wouldn’t hit a key target of being cash flow positive during the second half. That’s prompted analysts to speculate about the need for another capital raise.
Third-quarter revenue underwhelmed, tumbling 27% from a year earlier to £285.2 million. The operating loss widened to £56.1 million.
The company delivered 1,430 cars in the period, 13% fewer than a year earlier. The demand slump was starkest in the UK, where wholesale volumes dropped by nearly a third.
Aston Martin delivered just two of its priciest limited-edition models, which it calls “specials,” but expects to ship around 150 of its Valhalla hybrid supercars in the fourth quarter, assuming the US government shutdown or tariff quota system don’t derail those efforts.
(Reporting by Jamie Nimmo)
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