Aston Martin cuts investment plans as sales tumble further

Luxury car maker Aston Martin has cut its investment plans amid efforts to bring down costs in the face of widening losses.

The UK firm also said it is reviewing its strategy for future models as sales tumbled further in the face of pressure from US tariffs and weak demand in China.

Aston Martin Lagonda told shareholders it will cut its five-year investment commitment from £2 billion to £1.7 billion as it launched a review into costs and capital expenditure.

The car company, known for its association with the James Bond franchise, said it is also investing £350 million into its operations this year, in the latest cut to its spending plans.

Earlier this month the company said it was on track for £375 million of investment, having already pulled back from a previous £400 million target.

The company reported revenues had slid by 27% to £285.2 million for the quarter to September 30, compared with a year earlier.

The drop was driven by weaker wholesale volumes, which fell by 13% to 1,430 vehicles for the quarter.

The weakness was driven by “heightened challenges in the global macroeconomic environment” which weighed down on demand, as well as pressure from US tariffs.

Sales volumes were weaker than expected across “most regions” during the quarter, as it reported that UK sales volumes slid by 32%.

Aston Martin said its quarterly operating loss more than doubled to £56.1 million for the period.

The firm pointed towards an improvement in performance for the final quarter of the year but stressed that there are continued challenges, including supply chain pressures linked to the cyber incident on rival Jaguar Land Rover.

Adrian Hallmark, Aston Martin chief executive, said: “This year has been marked by significant macroeconomic headwinds, particularly the sustained impact of US tariffs and weak demand in China.

“In response to these market dynamics, we have taken, and continue to take, proactive steps to strengthen our overall position.

“Work is under way to review our future product cycle plan with the aim of optimising costs and capital investment whilst continuing to deliver innovative, class leading products to meet customer demands and regulatory requirements.”

Major shareholder and executive chairman Lawrence Stroll said his commitment and confidence in the long-term prospects of the business are “unwavering”.