Published by Global Banking & Finance Review®
Posted on October 29, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleAston Martin reduces its development budget due to US tariffs and weak demand in China, leading to a wider-than-expected quarterly loss.
By Raechel Thankam Job
(Reuters) -Aston Martin will cut its spending on developing new cars by 300 million pounds ($402 million) after uncertainty from U.S. tariffs and "extremely subdued" Chinese demand led to another wider-than-expected quarterly loss on Wednesday.
Only weeks after warning of a deepening annual loss, the British luxury carmaker said it is reviewing its costs and future capital spending as the global macroeconomic environment for the automotive industry remains challenging.
The carmaker's shares, which have skidded about 40% so far this year, fell as much as 7.8% in early trading on Wednesday.
Aston Martin said it expects to spend about 1.7 billion pounds over five years as part of its future product cycle plan, down from 2 billion pounds. It also cut its 2025 expenditure forecast to around 350 million pounds, from 375 million pounds.
Earlier this month, Aston Martin flagged a deeper annual loss, citing subdued demand in China, the impact of U.S. tariffs, and broader pressures on Britain's automotive industry, including supply chain risks exacerbated by a recent cyber incident at Jaguar Land Rover(JLR).
Despite cost cuts, the carmaker said it no longer expects positive free cash flow in the second half of 2025, but still anticipates a sequential improvement in the fourth quarter.
Aston Martin reported an adjusted pre-tax loss of 106.9 million pounds for the three months to September 30, compared to average analysts' expectations of a 99 million pound loss.
Known as fictional secret agent James Bond's brand of choice, Aston Martin had resumed shipments to the U.S. in June after earlier curbs aimed at clearing inventories and raised prices in response to tariffs.
The carmaker maintained its annual loss forecast of more than 110 million pounds, but said profitability and cash flow would materially improve in 2026.
($1 = 0.7451 pounds)
(Reporting by Raechel Thankam Job and Shashwat Awasthi in Bengaluru; Editing by Sherry Jacob-Phillips and Alexander Smith)
Capital expenditure refers to funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment. It is often used to undertake new projects or investments.
A financial crisis is a situation in which the value of financial institutions or assets drops rapidly. It can lead to widespread economic instability and often results in bankruptcies and bank failures.
Free cash flow is the cash generated by a company after accounting for capital expenditures. It is an important measure as it shows how much cash is available to investors.
Adjusted loss refers to a company's net loss after accounting for one-time expenses or income. It provides a clearer picture of ongoing financial performance.
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