Published by Global Banking & Finance Review®
Posted on August 7, 2025
1 min readLast updated: January 22, 2026
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Dowlais reported a £29M cash outflow in H1 due to U.S. tariffs. The company plans to offset these impacts and is set to be acquired by American Axle for $1.44B.
(Reuters) -British auto parts supplier Dowlais reported a cash burn of 29 million pounds ($38.76 million) in the first half of the year, mainly due to the impact of U.S. tariffs.
U.S. tariffs have pummelled global automakers, forcing them to book billions of dollars in losses, issue profit warnings, slash forecasts and raise prices.
"Looking ahead, we remain on track to offset the tariff-related headwinds in the second half, and we continue to expect our full-year performance to be towards the lower end of our guidance range," CEO Liam Butterworth said in a statement.
The company is set to be acquired by U.S. rival American Axle & Manufacturing in a $1.44 billion deal, which it expects to be completed in the fourth quarter.
Dowlais reported adjusted free cash outflow of 29 million pounds for the six months ended June 30, compared with a 10 million pounds inflow last year.
($1 = 0.7482 pounds)
(Reporting by Unnamalai L in Bengaluru; Editing by Eileen Soreng)
Cash outflow refers to the money that is leaving a business, often due to expenses, investments, or operational costs.
An acquisition plan outlines the strategy and steps a company intends to take to purchase another business or asset.
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