Aston Martin will split the costs from U.S. tariffs with its customers. The company will also sell down its U.S. inventory while limiting shipments there. CEO Adrian Hallmark announced this on Wednesday.
Hallmark told analysts and reporters that the company was considering further steps. They plan to navigate the evolving tariff landscape. He said they would communicate potential updates to their pricing strategy in mid- to late-May.
Hallmark stated, “We are not going to pass on full effect or absorb the full effect (of tariffs). It’s going to be a mix.”
Hallmark said U.S. dealers had enough stock of cars. They can keep supplying the market until early June.
Aston Martin changed its production plan. They wanted to get more cars to the United States before tariffs kicked in. Hallmark said this allowed them to assess negotiations and competitor reactions before changing strategy.
Aston Martin reported a narrower-than-expected first-quarter loss. The company gets more than a third of its revenue from the U.S.. They forecast improved results next quarter and affirmed their full-year outlook.
Bernstein analysts said U.S. dealers’ ample stock gave Aston Martin an advantage over competitors.
They stated, “Headlines of no change to full-year guidance and a small free cash flow beat …is the key message and should be well taken.”
Aston Martin’s positive quarterly update stood out. Other European carmakers like Stellantis, Porsche, Volkswagen, and Mercedes-Benz pulled or cut their forecasts due to tariff-driven turmoil.
The company reported an adjusted pretax loss of 79.8 million pounds for the three months to March 31. This was down from 110.5 million pounds a year ago. It was also below analysts’ average estimate of 89 million pounds.
The maker of high-end sports cars has struggled for traction since its market debut in 2018. This led to years of losses and ballooning debt. These issues prompted multiple equity raises and job cuts.
Its shares rose as much as 4.2% in early trading. By 0850 GMT, the shares were roughly flat. The stock has lost more than a third of its value so far this year.
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