Aston Martin is set for heavy losses this year, after the British luxury carmaker was forced to slash production forecasts in response due to economic ructions.

The group told investors on Monday that US trade tariffs and other ‘challenges in the global macroeconomic environment’ had weighed on demand in North America and the Asia Pacific region.

Aston Martin warned US tariffs add a ‘further degree of complexity’ for UK automakers, as it called for ‘more proactive support from the Labour government to protect the interests of small volume manufacturers’.

It is now on course for full-year earnings before nasties to come in at the lower end of market consensus, with underlying losses of more than £110million.

The update came as Aston Martin confirmed it would begin deliveries of its its mid-engined, plug-in hybrid electric vehicle 'Valhalla' during the final quarter of 2025, when it will also start deliveries of its new Vantage S and DBX S models.

But Aston Martin thinks it will only deliver around 150 Valhallas over the period, behind initial forecasts.

Aston Martin shares slumped 7.9 per cent to 74.9p in early trading. They have lost nearly a third of their value over the last 12 months and more than 80 per cent over the last five years. 

And it warned actual deliveries could be even lower as a result of ricks ‘associated with the current US federal government shutdown potentially impacting final US homologation timing and the ongoing uncertainty created by the US tariff quota system’.

Aston Martin now expects total wholesale volumes for all vehicles in 2025 to ‘decline by mid-high single digit percentage’ when compared last year’s total of 6,030. 

And it says that it could end up with negative free cash flow in the second half of the year.

It comes after 1,430 wholesale unit deliveries in the third quarter, behind expectations and below the 1,641 achieved over the same period last year.

Aston Martin blamed the shortfall on ‘weaker than expected demand including in both North America, with the continuing tariff impact, and APAC (including greater China)’.

It 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'.

It highlighted the cyber hack suffered by Jaguar Land Rover, which is currently placing suppliers around the country at risk, as potentially intensifying disruption. 

In response, Aston Martin cut capital expenditure forecasts for the year from £400million to £375million, and management is preparing to slash costs.

It said: ‘This will also include a review of the future product cycle plan in response to market and regulatory dynamics.

‘It is expected that this will result in lower capital investment in engineering and development than previously guided.’

'The Group continues to engage with both the US and UK governments to secure greater clarity and certainty. 

'Whilst positive dialogue on this matter has been achieved directly with the US government, the Company continues to seek more proactive support from the UK government to protect the interests of small volume manufacturers, like Aston Martin, who provide thousands of jobs, making an important contribution to local economies and to the wider UK automotive supply chain.'

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: 'Volumes remain the sticking point - despite new models, sales aren’t reaching levels needed to turn a profit, let alone generate positive cash flows. 

'Management is cutting costs and delaying spending while pointing one finger at US tariffs. But, with wholesale volumes now expected to fall mid-to-high single digits this year, the road to recovery looks long and windy, with no end in sight.'