Latest news with #Aston Martin
Auto Blog
4 hours ago
- Automotive
- Auto Blog
Why Luxury Car Prices Are About to Get Brutal
'It's my personal opinion that this is the best dash cam out there.' Maserati is serious about making its next flagship a manual transmission GT car with a high-powered version of its Nettuno V6, exceeding 621 horses. Is the 2025 Toyota Corolla FX more show than go? We got behind the wheel, and this is our honest review of the dark-trimmed compact sedan. Will This Break The Ice For Bigger Brands? Porsche and Aston Martin have begun raising prices in the United States as hopes of automotive-specific carveouts in trade deals fade, Reuters reports. The price hikes come shortly after a trade deal between the U.S. and the European Union that includes a 15%-tariff on EU-made cars beginning in August—lower than Trump threatened, but much higher than the 2.5% tariff from before President Donald Trump launched his global trade war. On Wednesday, Porsche said it had raised U.S. prices by 2.3% to 3.6% in July, Reuters reported, but said it had no plans to move production to the U.S. Bringing more manufacturing to the U.S. by making imports more expensive has been a primary aim of Trump's tariff policy. Aston Martin said it had begun 'incremental' price increases in June, while issuing a profit warning based on U.S. tariffs and low demand in Asia. No Relief In Sight Source: Kyle Edward 'This is not a storm that will pass,' Porsche CEO Oliver Blume said after the automaker cut its full-year profit target and reported a $462 million hit from tariffs in the first half of 2025. 'We continue to face significant challenges around the world.' Porsche isn't alone. Hyundai, Mercedes-Benz, and Porsche's parent brand Volkswagen all reported losses, issued profit warnings, or discussed raising prices in response to Trump's tariffs, Reuters noted. Even Ford, which claims around 80% of its vehicles are assembled domestically, reported an $800 million tariff penalty in its second-quarter results. European Automakers' Hope Of Relief Fades Source: Mercedes-Benz European automakers had been hoping for tariff reductions specific to the auto industry, but the recent deal has eroded optimism, according to Reuters. Mercedes CEO Ola Källenius told analysts Wednesday that the automaker was assuming tariffs would remain at 15% for the time being. 'For all intents and purposes, that global deal for now is it,' Källenius said, adding that any side deals were 'very uncertain.' The Volkswagen Group last week, however, said it was hoping to negotiate lower U.S. tariffs based on investment commitments. About the Author Stephen Edelstein View Profile
The Guardian
a day ago
- Automotive
- The Guardian
Aston Martin's 24-hour scramble to get lower US tariffs pays off
Aston Martin scrambled to deliver three months' worth of cars to dealers in the US within 24 hours as it rushed to qualify for lower tariffs that came into effect on 30 June. By invoicing the whole quarter's cars on that same day it avoided having to report a sales slump that might have alarmed investors. The operation may not have matched the drama of the James Bond films that have long featured the brand, but it 'was quite exciting, to put it mildly', said Adrian Hallmark, Aston Martin's chief executive. Donald Trump has shaken the global economy with a trade war, causing a particular stir in the car industry with his imposition of a 25% tariff on 3 April on top of an existing 2.5% levy. Germany's Mercedes-Benz said on Wednesday Trump's border taxes would cost it about €360m (£311m) this year, while the sportscar-maker Porsche said it had taken a €400m hit from the levies in the first half of the year. However, in early May, the US president and Keir Starmer agreed a deal to limit tariffs on 100,000 British-made cars per year to 10%. That rate came into force at one minute past midnight on 30 June, the final day of the second financial quarter. Aston Martin Lagonda manufactures all its cars in factories in Gaydon, Warwickshire, and St Athan, south Wales. It shipped 328 cars to dealers in the Americas between April and June but the majority were sent on 30 June. It was a 'mammoth task', Hallmark said. 'This left us with 24 hours to invoice the entire quarter's-worth of vehicle sales in the US.' The one-day scramble illustrates the tariff turmoil causing headaches for goods exporters around the world. Aston Martin revealed that it had raised prices for US customers by 3% to absorb some of the hit from the border taxes. Getting the cars to dealers early would have meant a big financial blow from absorbing the higher tariff rate, while late arrivals that missed the quarter-end would have meant reporting a big slump in sales. So Aston Martin decided to send hundreds of cars to bonded warehouses in the US – where goods can be stored without being subject to tariffs – before delivery firms raced to get them all to dealers before the end of day on 30 June. Those cars attracted the 10% rate, rather than 27.5%. Other carmakers face higher costs. The EU reached a deal with the US to cut tariffs on most goods including cars to 15%. Mercedes-Benz boss Ola Källenius said he did not expect any improvement on that for the car industry, despite lobbying for a lower rate from Germany's carmakers. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Aston Martin also said it had cut production and limited exports to the US to try to limit the financial impact. Even after its 30 June operation, Aston Martin could still be hit later in the year when it launches its million-dollar Valhalla, a mid-engine hypercar that it hopes will be a major contributor to profits. However, it is worried that the quota of 100,000 cars covered by the 10% tariff could be used up before it can get the Valhalla to dealers – potentially adding more than £100,000 to the price if importers must pay the 27.5% rate. British companies exported just over 100,000 cars to the US last year, with the bulk being Range Rovers shipped by JLR. The quota could mean an end-of-year race between British carmakers to get their vehicles into the country, with 'pressure on the number of slots available on the 100,000 quota', Hallmark said.
The Guardian
2 days ago
- Automotive
- The Guardian
Aston Martin's 24-hour scramble to get lower US tariffs pays off
Aston Martin scrambled to deliver three months' worth of cars to dealers in the US within 24 hours as it rushed to qualify for lower tariffs that came into effect on 30 June. By invoicing the whole quarter's cars on that same day it also avoided having to report a sales slump that might have alarmed investors. The operation may not have matched the drama of the James Bond films that have long featured the brand, but it 'was quite exciting, to put it mildly', said Adrian Hallmark, Aston Martin's chief executive. Donald Trump has shaken the global economy with a trade war, causing particular pain in the car industry with his imposition of a 25% tariff on 3 April on top of an existing 2.5% levy. Germany's Mercedes-Benz said on Wednesday Trump's border taxes would cost it about €360m (£311m) this year, while the sportscar maker Porsche said it had taken a €400m hit from the levies in the first half of the year. However, in early May the US president and Keir Starmer agreed a deal to limit tariffs on 100,000 British-made cars per year to 10%. That rate came into force at one minute past midnight on 30 June, the final day of the second financial quarter. Aston Martin Lagonda manufactures all its cars in factories in Gaydon, Warwickshire, and St Athan, south Wales. It shipped 328 cars to dealers in the Americas between April and June but the majority were only sent on 30 June. It was a 'mammoth task', Hallmark said. 'This left us with 24 hours to invoice the entire quarter's worth of vehicle sales in the US.' The one-day scramble illustrates the tariff turmoil causing headaches for goods exporters around the world. Aston Martin revealed that it had raised prices for US customers by 3% to absorb some of the hit from the border taxes. Getting the cars to dealers early would have meant a big financial blow from absorbing the higher tariff rate, while late arrivals that missed the quarter-end would have meant reporting a major slump in sales. So Aston Martin decided to send hundreds of cars to bonded warehouses in the US – where goods can be stored without being subject to tariffs – before delivery firms raced to get them all to dealers before the end of day on 30 June. Those cars attracted the 10% rate, rather than 27.5%. Other carmakers face higher costs. The EU reached a deal with the US to cut tariffs on most goods including cars to 15%. Mercedes-Benz boss Ola Källenius said he did not expect any improvement on that for the car industry, despite lobbying for a lower rate from Germany's carmakers. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Aston Martin also said that it had cut production and limited exports to the US to try to limit the financial impact. Even after its 30 June operation, Aston Martin could still be hit later in the year when it launches its million-dollar Valhalla, a mid-engine hypercar that it hopes will be a major contributor to profits. However, it is worried that the quota of 100,000 cars covered by the 10% tariff could be used up before it can get the Valhalla to dealers – potentially adding over £100,000 to the price if importers must pay the 27.5% rate. British companies exported just over 100,000 cars to the US last year, with the bulk being Range Rovers shipped by JLR. The quota could mean an end-of-year race between British carmakers to get their vehicles into the country, with 'pressure on the number of slots available on the 100,000 quota', Hallmark said.
Daily Mail
2 days ago
- Automotive
- Daily Mail
Aston Martin warns Trump's tariffs will harm profits this year
Aston Martin expects to just break even this year as it warned 'evolving and disruptive' US trade tariffs would harm profits this year. The iconic British carmaker, which is also suffering subdued demand in Asian markets, cut its annual profit forecast on Wednesday after it was forced to scale back production and imports to the US. US tariffs have pummeled car firms, forcing companies, including GM, Volkswagen and Hyundai, to either book vast losses, issue profit warnings or slash their financial forecasts. Aston Martin said it now expects its annual adjusted operating profit to roughly break even. The group's chief executive, Adrian Hallmark, said the tariff situation was 'unhelpful to our operations' during the second quarter of the year. Hallmark's turnaround effort to boost efficiency and cut costs has been hit by Trump's tariffs on car sales in its biggest market. Hallmark warned that demand in the Asia-Pacific region would remain supressed in the near term. Sales in Asia-Pacific, which account for more than a quarter of Aston Martin's revenue, fell 9 per cent in the first half of 2025, with volumes in China broadly flat. The business, which had earlier forecast positive operating earnings in 2025, added that it now expected its gross margin to be broadly flat from a year ago. Revenue fell 34 per cent in the second quarter to £221million, with lower sales of its hypercars contributing to the downturn. The group's operating loss for the second quarter came in at £67.4million, down from £47.4million at the same point a year ago. On tariffs, Hallmark added: 'In response, we adjusted production and limited imports through April and May while awaiting confirmation of a trade agreement between the UK and the US, leveraging existing inventory held by our US dealers in that period. 'We resumed shipments to the U.S. in June in anticipation of a finalised agreement which came into effect on 30 June 2025. 'We continue to actively engage the UK government to urge them to improve the quota mechanism to ensure fair access for the whole UK car industry to the 10 per cent rate on an ongoing basis.' Higher tariffs may hurt demand, disrupt distribution, and raise costs for the business, which is responding by reviewing supply chain and pricing strategies to reduce possible negative impacts, it said. As part of a deal struck between the UK and US which came into effect in June, British carmakers will pay tariffs of 10 per cent on cars exported to the US. The 10 per cent tariff is less than the previous tariff of 27.5 per cent, but considerably higher than the 2.5 per cent levy in place before Trump's fresh trade tariffs. Plus, the lower tariff rate only counts for the first 100,000 UK cars sold in the US on a first come, first served basis. All deliveries above that threshold face the higher 27.5 per cent tariff. Aston Martin limited shipments to the US in April and May, before resuming them last month. The firm's net debt increased to £1.38 billion at the end of June. Amid uncertainty over tariffs, Aston Martin maintained its goal of becoming free-cash flow positive later this year. Aston Martin said it was edging closer to a deal to sell its minority stake in the Formula One racing team that bears its name for as much as £110million, which is a higher amount than previously targeted.
Telegraph
2 days ago
- Automotive
- Telegraph
US trade deal will only benefit Jaguar Land Rover, warns Aston Martin
Sir Keir Starmer's trade deal with Donald Trump risks favouring Jaguar Land Rover (JLR) and 'squeezing out' smaller carmakers, the boss of Aston Martin has claimed. Adrian Hallmark said changes were urgently needed to the UK-US agreement 'so we don't get squashed and so that it doesn't become a JLR tariff agreement'. The chief executive's comments, reported by Bloomberg, concern the trade deal's arrangements for British cars shipped to America under a new quota system that came into effect this month. Under the deal, tariffs on British cars have fallen from 27.5pc to 10pc. But this is only for the first 100,000 cars per year, or 25,000 cars per quarter. It has also recently been confirmed that this quota will be allocated on a 'first come, first served' basis, triggering fears that carmakers will be forced to race against each other to get vehicles out of factories and on to ships first – or face higher taxes than their competitors. JLR shipped more than 120,000 cars to North America in 2024, according to published sales figures. Aston shipped about 2,000. High stakes On Wednesday, Mr Hallmark called on the Government to impose limits for different categories within the quota. For example, he said some of the quota should be reserved for the type of high-end supercars that Aston and competitors produce. The marque also competes with the likes of JLR, Lotus, Rolls-Royce and Bentley in the lucrative luxury SUV market with its DBX model. The stakes for these brands are high because once the quota is taken up, they must go back to paying the 27.5pc tariffs Mr Trump previously imposed in April. Such levies have proved expensive for companies exporting from the EU, which is scrambling to get a deal with Mr Trump over the line to reduce the rate to 15pc. Vauxhall owner Stellantis has said it expected to pay €1.5bn (£1.3bn) in tariffs this year. Separately on Wednesday, Mercedes-Benz and Porsche said tariffs would cost them €362m and €400m respectively for the first half of 2025 alone. Earlier this month, Mike Hawes, chief executive of the Society for Motor Manufacturers and Traders, said there was a 'general feeling' among carmakers 'that the tariff quota we have is sufficient to meet the demand for this year' but the industry wanted it to grow year on year. However, at the moment there is no indication that the quota will be increased. Mr Hawes added: 'They're reasonable quotas, given our export volumes. Obviously we would like to see that increase … but at least it gives you a basis to start from. 'Different brands will have different strategies, wherever they are on the product cycle for next year, and we know there are some new products coming next year.' He admitted there was a possibility that carmakers might seek to beat each other to the quota and that there was probably 'some paranoia' about that in the industry. But he claimed such a scenario was 'unlikely, because if you try and put one over on your competitors, you're going to damage that same supply chain, because it's shared among so many of these manufacturers'. Sir Keir visited the Midlands headquarters of JLR in May when he announced his 'landmark' trade deal with Mr Trump and vowed to protect jobs. However, just weeks later the carmaker said it would cut 500 jobs in what was described as 'a personal embarrassment' for the Prime Minister. A government spokesman said: 'We are working with industry to ensure the quota works effectively and fairly, and will ensure the UK remains a top destination for investment in automotive manufacturing through our Plan for Change.' JLR was approached for comment on Wednesday. Mr Hallmark's remarks came as Aston confirmed a 25pc drop in sales during the first half of 2025, blaming both US tariffs that were announced in April and lower deliveries of 'specials' – the ultra-expensive and highly profitable one-off models it produces. The company sold 1,922 in the first six months of this year, down from 1,998 in 2024. But revenues fell 25pc to £454m and profit margins shrank from 39pc to 28pc, reflecting the less profitable sales mix. Half-year losses fell from about £217m to £141m.
