Aston Martin limits US exports, mulls pricing adjustment to offset tariff hit

Aston Martin will split the costs resulting from US tariffs between the company and its customers, and will sell down its US inventory while limiting shipments there, the luxury carmaker's chief executive said on Wednesday.

CEO Adrian Hallmark told analysts and reporters the company was considering further steps to navigate the evolving tariff landscape and would communicate potential updates to its pricing strategy in mid- to late-May.

“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.

He said US dealers had sufficient stock of cars to keep supplying the market until early June.

Aston Martin changed its production plan to get more cars to the US before tariffs kicked in, allowing it now to take stock of negotiations and competitor reaction before altering its strategy, Hallmark said.

Earlier on Wednesday, Aston Martin, which gets more than a third of its revenue from the US, reported a narrower-than-expected first-quarter loss, forecast improved results next quarter, and affirmed its full-year outlook.

Bernstein analysts said ample stock of vehicles at US dealers gave Aston Martin an edge over its competitors.

“Headlines of no change to full-year guidance and a small free cash flow beat ... is the key message and should be well taken,” they said.

Aston Martin's positive quarterly update stood out on an otherwise gloomy day for European carmakers as Stellantis, Porsche, Volkswagen and Mercedes-Benz pulled or cut their forecasts due to tariff-driven turmoil.

The brand associated with fictional secret agent James Bond reported an adjusted pretax loss of £79.8m (R1.98bn) for the three months to March 31, down from £110.5m (R2.75bn) a year ago, and below analysts' average estimate of £89m (R2.21bn).

The maker of high-end sports cars has struggled for traction since its market debut in 2018, leading to years of losses and ballooning debt, which has prompted multiple equity raises and job cuts.

Its shares rose as much as 4.2% in early trading, but were roughly flat by 8.50am GMT. The stock has lost more than a third of its value so far this year.