Aston Martin Faces 2025 Headwinds as Tariffs and Economic Challenges Slash Demand
Luxury car manufacturer Aston Martin is facing headwinds in 2025. US trade tariffs and global economic challenges have dampened demand in North America and Asia Pacific. The company's shares have plummeted by nearly a third in the last year and over 80% in the past five years. Aston Martin is now seeking more support from the UK government to safeguard small volume manufacturers.
Aston Martin's total wholesale volumes are projected to drop by a mid-high single-digit percentage in 2025 compared to 2024. The company expects full-year earnings before interest, tax, depreciation, and amortization (EBITDA) to be at the lower end of market consensus, with underlying losses exceeding £110 million. Despite these challenges, Aston Martin plans to deliver its Valhalla, Vantage S, and DBX S models in the fourth quarter of 2025, with around 150 Valhallas expected then, fewer than initially forecasted.
The company has reduced its capital expenditure for 2025 to £375 million, aiming to cut costs and review its future product cycle plan. Aston Martin may experience negative free cash flow in the second half of 2025, and heavy losses are anticipated for the year due to reduced production forecasts.
Aston Martin's struggles in 2025 highlight the pressures faced by luxury car manufacturers in a challenging global economic climate. The company's call for more support from the UK government underscores the need for proactive measures to protect and promote small volume manufacturers in the face of trade tariffs and other headwinds.
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