Aston Martin Lagonda Global Holdings PLC Cuts Development Spending After Deeper-Than-Expected Quarterly Loss

29 October 2025

British luxury carmaker Aston Martin announced on October 29 that it will slash its five-year development spend by £300 million, reducing its planned investment from £2 billion to £1.7 billion, following a wider-than-expected adjusted pre-tax loss of £106.9 million for the three months ended September 30.

The company pointed to a confluence of macro-headwinds as the cause: demand in China described as “extremely subdued,” the impact of U.S. import tariffs on its British-built vehicles (which can face as much as 27.5 % duty without manufacturing in the U.S.), and broader supply-chain disruptions affecting the auto sector.

In line with these challenges, Aston Martin also cut its full-year planned capital expenditure to around £350 million, down from a previously guided £375 million for 2025. The firm maintained its annual adjusted operating-loss forecast of more than £110 million, and said it no longer expects to generate positive free cash flow in the second half of the year, although it anticipates sequential improvement in the fourth quarter.

Wholesale volumes underscored the weakness. For the quarter Aston Martin delivered 1,430 units, a 13 % drop from 1,641 in the prior year period, while revenue for the first nine months fell approximately 26 % to £740 million.

In response, the company said it will conduct a full review of its cost base, product-cycle timing and manufacturing footprint. The combination of weaker global demand and elevated external costs has pushed the firm into rapid restructuring mode, even as it works to bring to market its flagship Valhalla mid-engine hybrid supercar.

For investors, the developments raise questions about the ability of even premium brands to insulate themselves from trade shocks and global consumer weakness. As one analyst noted, Aston Martin “is exposed on three fronts: no U.S. manufacturing base, a China luxury-car market under pressure, and an ongoing product-investment cycle that must be funded even as margins shrink.”