Aston Martin: Battling Tariffs and Supply Chain Disruption

Amid ongoing trade uncertainty and disruption, Aston Martin is revising its FY 2025 guidance ahead of publishing its Q3 2025 results.

The luxury carmaker anticipates declining wholesale volumes after a slow Q3.

It has also raised concerns over the potential knock-on effect of the crippling cyber attack experienced by Jaguar Land Rover, which has impacted operations and suppliers for several weeks. 

Aston Martin is therefore under pressure to secure and maintain its supply chain resilience. 

Lowering business expectations

Founded in 1913, Aston Martin is a global brand recognised for its style, luxury and performance.

It blends distinct craftsmanship and sleek styling with the latest technology to create its vehicles, and is now developing sustainable alternatives to its Internal Combustion Engine, with plans to create a line-up of electric SUVs and sports cars. 

In anticipation of its Q3 report, set for release on 29 October, the organisation is revising FY 2025 guidance having been hit by US President Donald Trump's trade tariffs and wider geopolitical uncertainty. 

The iconic brand is preparing to commence delivery of the Valhalla hybrid supercar in Q4, which behind schedule but should enjoy a smooth rollout in 2026. 

Meanwhile, an immediate review of future cost and capital expenditure is under way, with an expected FY 2025 adjusted EBIT at the lower end of around £100m (US$134.4m). 

Disruptions and delays

Despite initially expecting to match its Q3 2024 wholesale delivery (1,641 units), Aston Martin fell below this mark in Q3 2025 (1,430). 

The disappointing performance has been down to decreasing demand in North America and APAC, partially a result of the impact of tariffs. Q3 retail volumes were on the same level as wholesale. 

Aston Martin is in the process of launching a number of new vehicles. The first deliveries of the Vanquish Volante occurred during Q3 and, after positive reviews, the group is anticipating successful rollout of the new Vantage S and DBX S. 

The Valhalla, Aston Martin's first mid-engine PHEV supercar, is inspired by the Valkyrie model and uses technologies form Formula 1. It is a limited edition car which entered production in Q3.

Customer deliveries are due to begin during Q4, although delays have been caused by vehicle engineering timelines and the finalisation of mandatory certification approvals. As a result, the group anticipates a reduction in wholesale deliveries of the Valhalla in Q4 to 150.  

Elsewhere, the ongoing US federal government shutdown could impact US certification timing, impacting sales, while Trump's tariffs continue to bring uncertainty. 

Despite Aston Martin's attempts to mitigate tariff disruption by planning ahead, uncertainty has affected sales more than anticipated.

Adrian Hallmark, CEO of Aston Martin Lagonda, said earlier in 2025: "This year, we have a plan which sees us making a small net EBIT profit and become cash flow positive in the second half of the year.

"We maintain this commitment despite the potential impacts of US tariffs and, with our strong product programme combined with our business transformation activity, supported by Porsche Consulting, we remain optimistic for not only 2025, but for the mid term outlook."

Wider impacts

Aston Martin has faced significant disruption due to a host of external factors which have impacted manufacturing timelines and the cost of production.

Ongoing uncertainty means the groups says it is currently unable to accurately predict performance figures for the financial year end. 

Automotive supply chain disruption cannot be dismissed, with Aston Martin employing thousands of people and supporting various local economies. Moreover, changes to China's ultra-luxury car taxes have added extra costs and red tape.

Inwardly, there now exists pressure to reshape its manufacturing and supply chain operations, especially in light of the major cyber incident at JLR. 

To avoid the same fate, Aston Martin is faced with the prospect of having to implement more stringent cybersecurity measures, closely monitoring third-party vendors. 

Despite grappling with ongoing instability, the company is making meaningful adjustments in a bid to enhance supply chain resilience and efficiency in Q4 2025 and beyond.