Aston Martin Lagonda has warned it expects to tumble into the red amid US tariff woes and flagged fears over supply chain pressures from Jaguar Land Rover’s cyber attack fallout.
The luxury carmaker said it is now braced for underlying losses greater than £110 million, which was the bottom of the previous expected range, marking the second downgrade to its outlook since early July.
The group said wholesale volumes are set to drop by a mid-high single-digit percentage due to “heightened challenges in the global macroeconomic environment, including the ongoing impact of tariffs”, with a weaker performance being seen across North America and Asia.
Bosses have launched an “immediate” review of costs and spending in light of the tougher trading.
It also raised worries over the impact on the supply chain across the industry from the crisis at Jaguar Land Rover (JLR) following a major cyber attack at the end of August.
JLR was forced to halt manufacturing production for a month, announcing last week it would begin to only partially resume some operations, which has put smaller suppliers under immense pressure.
The Government announced it would underwrite a £1.5 billion loan guarantee to JLR to give suppliers some certainty over payments, but many are still said to be suffering severe cash shortages.
JLR has the largest supply chain in the UK automotive sector, which employs around 120,000 people and is largely made up of small and medium-sized businesses.
Aston Martin said: “The global macroeconomic environment facing the industry remains challenging.
“This includes uncertainties over the economic impact from US tariffs and the implementation of the quota mechanism, changes to China’s ultra-luxury car taxes and the increased potential for supply chain pressures, particularly following the recent cyber incident at a major UK automotive manufacturer.”
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