Aston Martin reported a pre-tax loss of £78.8m in the first six months of the year, citing waning demand from dealers across Europe and the UK. The disappointing earnings announcement led to the shares of the luxury car manufacturer tumbling by more than 12% to £4.98 a share on Wednesday, extending its losses to more than a fourth in value since its £19 a share debut in October last year.
In addition, the more than 100-year old company issued a profit warning last week, slashing its forecast for the year from 7,100-7,300 cars to around 6,500 amid deteriorating economic conditions and the uncertainty surrounding Britain’s exit from the European Union.
The automobile industry in the UK is going through a major crisis with the Brexit uncertainty adding to their woes. According to the UK’s car industry body SMMT, investments in the sector fell from a seven-year average of £2.5bn-2.7bn to £90m in the first six months of this year and while the car industry in Britain is resonating the other industries against a no-deal Brexit, the one major deterrent facing all the businesses in the region is the ongoing Brexit uncertainty.