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3w ago

Aston Martin Adjusts Strategy to Navigate U.S. Tariffs and Financial Losses

The luxury carmaker limits U.S. imports, reports increased Q1 losses, and reaffirms growth plans driven by its upcoming Valhalla model.

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The Aston Martin Vantage, a luxury sports car, is presented during its launch in New Delhi, India, August 29, 2024. REUTERS/Priyanshu Singh/File Photo
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Shipping models, including the DB12, across the Atlantic from its factories in the UK is big business for Aston Martin

Overview

  • Aston Martin is limiting vehicle exports to the U.S. to mitigate the impact of President Donald Trump’s 25% tariffs on imported cars and parts.
  • The company is leveraging existing inventory held by U.S. dealerships to maintain sales while avoiding higher tariff costs.
  • For Q1 2025, Aston Martin reported a 15% rise in operating losses to £67.3 million and a 13% decline in revenue to £233.8 million.
  • Despite financial challenges, the company reaffirmed its 2025 growth forecast and expects stronger performance in the second half, driven by the launch of the Valhalla model.
  • Liquidity improvements are underway through the planned sale of its Formula One team stake and a £52.5 million investment from Lawrence Stroll’s Yew Tree Consortium.