Business

OpenAI has agreed a multibillion-dollar partnership with Advanced Micro Devices (AMD) to secure massive computing power for its next generation of artificial intelligence models — a direct challenge to Nvidia’s dominant position in the global AI chip market.

Under the five-year deal, OpenAI will purchase up to 6 gigawatts of AMD’s most advanced AI processors, a level of computing capacity equivalent to the peak electricity demand of London. The partnership is designed to provide OpenAI with the infrastructure it needs to scale its technology as competition in the AI sector intensifies.

Shares in AMD surged 27 per cent to $209.39 in New York trading after the deal was announced, adding tens of billions of dollars to the chipmaker’s market value.

As part of the arrangement, OpenAI has the right to acquire a 10 per cent stake in AMD, worth around $34 billion at current market prices. The company can buy up to 160 million AMD shares for one cent each, with the first tranche due to vest after the shipment of AMD’s upcoming MI450 chips in the second half of 2026.

AMD chief executive Lisa Su said the deal “tightly aligns OpenAI and AMD”, adding that it will “drive significant revenue and earnings growth for AMD while allowing OpenAI to accelerate their AI build-out and share directly in the upside of our mutual success”.

OpenAI chief executive Sam Altman described the partnership as “a major step in building the compute capacity needed to realise AI’s full potential”.

The agreement reflects OpenAI’s escalating drive to secure advanced semiconductor capacity as demand for generative AI technology soars. The San Francisco-based company, which has yet to turn a profit, generated an estimated $4.3 billion in revenue in the first half of 2025 but burned through $2.5 billion in cash, according to The Information.

Just weeks earlier, OpenAI announced a “strategic partnership” with Nvidia, under which the world’s most valuable company is expected to invest up to $100 billion and supply at least 10 gigawatts of processors. That deal has not yet been finalised.

The AMD partnership suggests OpenAI is seeking to diversify its chip suppliers and reduce its reliance on Nvidia hardware, which dominates the AI accelerator market.

While AMD’s stock jumped on the news, Nvidia shares dipped 0.8 per cent to $186.08 amid signs of intensifying competition. Analysts said the OpenAI deal gives AMD a significant foothold in the fast-expanding AI infrastructure market.

However, some market observers have warned that such multibillion-dollar chip deals may be fuelling a speculative bubble reminiscent of the dotcom era, when vast sums were poured into fibre-optic networks on the promise of future growth.

Critics say the recent wave of reciprocal investments — where companies fund start-ups that in turn purchase their products — could mask underlying demand risks in the AI sector.

OpenAI’s latest deal follows a series of supply chain moves, including partnerships with Samsung and SK Hynix for advanced memory chips, as well as efforts to design its own custom processors.

For AMD, the partnership is expected to generate tens of billions of dollars in new revenue and bolster its standing as a credible alternative to Nvidia in the race to power the next wave of AI applications.

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OpenAI strikes multibillion-dollar deal with AMD in challenge to Nvidia’s AI chip dominance

Delivery company DPD is facing potential disruption after hundreds of drivers began three days of action in protest at cuts to their pay for delivering small parcels.

The company has reduced payments for such deliveries by 65p per parcel, a change that self-employed and franchised drivers say could reduce their annual earnings by as much as £6,500.

The protest, organised informally through online chat groups with an estimated 1,300 to 1,500 participants, began on Tuesday and is set to continue through Thursday. Drivers taking part have refused to make deliveries during the three-day period.

DPD, which relies heavily on self-employed and franchised drivers, said the payment adjustments were made to reflect “changes in our parcel traffic profile”.

The company said driver stops involving only smaller parcels would see the 65p reduction, while deliveries that include larger, high-value or pharmaceutical parcels would remain unchanged. It added that heavier items would attract a 65p increase and that new incentive payments had been introduced “to increase earnings all year round”.

“As a result, we believe our driver remuneration package remains among the best in our industry,” DPD said.

However, many drivers dispute that claim. One driver told the BBC that the change would cut his daily income by about £25, making it “difficult” to cover household expenses. Another said there was “no way” to make up the shortfall through larger parcels, which are less frequent.

“We’d have to work longer and do more stops just to earn the same as before,” he said.

DPD said it did not expect the action to cause significant disruption, though it acknowledged that “some drivers have raised concerns regarding the new arrangements”.

“However, a small number of drivers at various depots have chosen not to operate today,” a spokesperson said. “We do not expect this to have a significant impact on our service.”

The dispute underscores growing tensions in the UK parcel delivery sector, where rising competition, squeezed margins and fluctuating consumer demand are putting pressure on pay and conditions.

The standoff comes as logistics firms across Europe face structural changes driven by e-commerce growth and increasing demand for rapid delivery services.

Industry analysts say that falling delivery rates and the dominance of major online retailers have intensified competition, forcing delivery firms to balance cost-cutting with maintaining service quality.

The turmoil in the sector is reflected elsewhere in Europe, where traditional postal networks are under strain. Denmark’s postal service PostNord recently ended letter deliveries altogether, signalling a broader shift towards parcel-focused logistics.

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DPD faces disruption as drivers take action over pay cuts to small parcel deliveries

Asahi Group, Japan’s largest brewer, has partially restarted beer production at all six of its breweries after a cyber-attack last week forced a temporary shutdown across its domestic operations.

The company said production of its flagship Asahi Super Dry beer had resumed, along with limited output at facilities producing soft drinks and food products. However, Asahi cautioned that its breweries were “not yet fully operational” and that normal operations would resume gradually in the coming days.

The cyber-attack had paralysed Asahi’s ordering and delivery systems, disrupting supplies to major retailers including 7-Eleven and FamilyMart, which warned customers of shortages across Japan.

Asahi confirmed that two soft drink plants have partially reopened, though not yet at full capacity, while a further five beverage factories will “resume gradually in accordance with shipments”. All seven food production sites have also restarted, but are operating below normal levels.

The company stressed that the production systems themselves were not directly compromised by the cyber-attack, but the inability to process orders and shipments forced the temporary shutdown.

From 15 October, Asahi will resume shipments of 16 products, including Asahi Dry Zero, Asahi Zero, Clear Asahi, and Black Nikka Clear whisky. Some planned new product launches have been postponed as recovery efforts continue.

The incident highlights the growing threat of cyber-attacks on major manufacturers, particularly those with complex supply chains. Asahi joins a growing list of global firms affected by such disruptions — including Jaguar Land Rover, which is still recovering from an attack that recently halted car production.

Asahi’s Japanese business, which accounts for around half of the company’s global sales, bore the full brunt of the disruption. Its international operations — including ownership of Fuller’s in the UK and global brands such as Peroni, Pilsner Urquell, and Grolsch — remain unaffected.

Asahi said it expects to restore full operations gradually and is working to reinforce cybersecurity across its global network. Despite the disruption, the company said it was confident of meeting domestic demand as distribution stabilises over the coming weeks.

Analysts said the rapid partial restart reflects Asahi’s strong resilience and contingency planning, but warned that ongoing risks from cyber incidents continue to pose significant challenges for global supply chains.

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Asahi restarts beer production after cyber-attack disrupts Japanese breweries

Six university-founded social enterprises have been selected as finalists for Ignite 2025, the Ford Family Foundation’s flagship competition supporting early-stage, purpose-driven ventures.

The finalists will pitch their innovations at the Barclays Innovation Hub powered by Eagle Labs in Shoreditch, London, on Tuesday 21 October 2025, competing for a share of a £50,000 prize fund. Each will receive tailored pitching support, accelerator mentoring and access to Barclays Eagle Labs’ digital resources.

Last year’s finalists went on to share an additional £280,000 in follow-on funding after the inaugural Ignite showcase at The Shard.

Tony Ford, founder of the Ford Family Foundation, praised the “extraordinary talent emerging from universities across the UK,” calling this year’s field “outstanding.”

“Each of the ventures we are celebrating through Ignite demonstrates the kind of entrepreneurial talent and social purpose that will shape the future,” Ford said. “It’s a privilege to support and showcase their work.”

The Ignite 2025 finalists

WeDonate (University of Chichester) – A digital platform designed to boost blood donation through community-based rewards, helping hospitals maintain reliable supplies while recognising donors and supporting local businesses.

Reporti (Imperial College London & Royal College of Art) – A safeguarding app enabling users at large events to report incidents such as harassment or unsafe behaviour quickly and securely.

Harker (University of Liverpool) – A CRM system for homelessness charities, providing data insights to improve services, strengthen funding applications and enhance outcomes for vulnerable individuals. (pictured above) 

AIBŌ (King’s College London) – A social enterprise connecting students with older people through paid companionship, tackling loneliness while supporting students financially.

Braille Forge (Brunel University) – Affordable braille technology to improve access to STEM education for visually impaired students, with a focus on lowering costs and enhancing tactile learning tools.

Rephobia (Queen’s University Belfast) – A virtual reality therapy platform offering affordable and accessible treatment for phobias, including fear of flying, heights and social situations.

Giselle Gonzales, founder of EQUALReach and finalist at Ignite 2024, will return as keynote speaker and judge. Her employment platform connects refugee professionals with digital work opportunities and has since secured a UK and international pilot with a Fortune 500 company.

Gonzales reflected on her journey since last year’s competition:

“When I started my company in the UK, I never imagined I’d be pitching to a packed audience at The Shard. The friendships, networks and support from Ignite have been invaluable. It’s an honour to return as a judge to help champion the next wave of founders driving profit with purpose.”

The six finalists will present their pitches to a live audience and judging panel, followed by a Q&A session. Organisers say the competition continues to highlight the growing pipeline of socially conscious entrepreneurs emerging from UK universities, blending innovation with impact.

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Six university start-ups named as finalists for Ignite 2025 social enterprise competition

UK investors withdrew a record £3.6 billion from equity funds during the third quarter, marking the worst three-month run for stock market investments since Calastone began compiling data in 2015.

The figures highlight growing caution among investors who have been spooked by high valuations and global uncertainty, prompting a decisive move into the relative safety of bonds and cash.

Edward Glyn, head of global markets at Calastone, said it was “really unusual” to see markets at record highs while investors were “moving decisively for the exits across such a broad range of funds”.

The exodus came despite both the FTSE 100 and S&P 500 posting gains of nearly 15 per cent since the start of the year. Much of that growth has been driven by a small cluster of large technology stocks that have soared on the back of artificial intelligence optimism.

Glyn warned that “some parts of the US market in particular do seem to be exhibiting signs of irrational bubble behaviour”, adding that share prices can “defy fundamentals for a long time — and that is costly for investors on the sidelines.”

UK equity funds saw the steepest losses in September, suffering net outflows of £692 million. Global funds recorded a fourth consecutive month of withdrawals, shedding just over £200 million, while North American funds lost £146 million.

Overall, investors have added just £126 million to equity funds so far this year, a sharp fall from £22.7 billion in net inflows over the same period last year.

Fixed-income and money-market funds were the biggest beneficiaries of the shift in sentiment. These safer assets absorbed £895 million in new money during September, including £610 million funnelled into bond funds.

Analysts say the trend reflects a broader flight to safety as investors seek protection from market volatility, stubborn inflation and uncertainty about the sustainability of global equity valuations.

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UK investors withdraw record £3.6bn from shares as market jitters drive shift to bonds and cash

Billionaire Sir Jim Ratcliffe’s petrochemicals group Ineos has announced plans to cut 60 jobs at its Hull Acetyls plant in East Yorkshire, citing “dirt-cheap, carbon-heavy imports from China” and “sky-high” UK energy costs.

The redundancies represent around a fifth of the site’s workforce, and follow the closure earlier this year of Ineos’s Grangemouth oil refinery in Scotland, which led to hundreds of job losses.

David Brooks, divisional chief executive of Ineos Acetyls, said the decision was “not taken lightly” but that the business had been left with “no other choice” in the face of “sustained pressure from energy costs” and unfair competition from low-cost Chinese imports.

Ineos said the UK chemicals sector was being “crippled” by anti-competitive trade practices from China, as cheap products flood European markets. The company warned that without stronger trade protections from the UK government and the European Commission, further job losses could follow across its operations.

“This is a textbook case of the UK and Europe sleepwalking into deindustrialisation,” Brooks said. “If governments don’t act now on energy, carbon and trade, we will keep losing factories, skills and jobs. And once these plants shut, they never come back.”

The job cuts in Hull coincide with the loss of 175 positions at Ineos sites in Rheinberg, Germany, also attributed to displaced Chinese exports that have been redirected to Europe following tariffs imposed by the United States under former President Donald Trump’s protectionist trade measures.

Ineos recently invested £30 million to convert the Hull facility to hydrogen power, part of a wider effort to decarbonise operations. The plant produces acetyl chemicals used in pharmaceuticals, adhesives and industrial coatings, including ingredients for aspirin and paracetamol.

Despite the investment, Ineos said high energy prices and unlevel global competition were undermining the UK’s industrial base.

The latest cuts extend a pattern of downsizing across Ineos’s European operations. Since 2019, the group has closed sites at Grangemouth in Scotland and Geel in Belgium, with further closures under way in Gladbeck, Germany. Other facilities in Tavaux (France) and Martorell (Spain) have been mothballed.

Ineos, which employs 24,500 people across 29 businesses in 27 countries, warned that without stronger industrial strategy and trade defences, Britain risks losing more high-value manufacturing capacity.

Sir Jim Ratcliffe, 72, whose fortune is estimated at £17 billion, has expanded Ineos beyond petrochemicals into sport and automotive ventures, including co-ownership of Manchester United, backing the Mercedes Formula 1 team and launching the Ineos Grenadier 4×4 brand.

The company said it remains committed to investing in UK manufacturing but called for urgent government action to address what it described as “anti-competitive” energy and trade conditions.

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Ineos blames cheap Chinese imports and high energy costs as it cuts 60 jobs in Hull

Scottish electric vehicle manufacturer Munro EV has secured £2 million in new investment from existing backer Elbow Beach and other investors to accelerate production of its all-electric M-Series 4x4s, designed for use in mining, defence, and construction.

The fresh funding round will help the company scale production capacity at its Glasgow facility, with up to 300 new manufacturing jobs expected to be created to fulfil a backlog of 246 preliminary customer orders worth £17.4 million.

The investment marks a key step in Munro’s ambition to capture a fast-growing niche in the global electrification push: heavy-duty, all-terrain vehicles capable of replacing diesel fleets in some of the world’s most demanding industries.

While electric cars have gained widespread adoption in the consumer market, industrial and off-road sectors have lagged behind. Mining alone accounts for 4–7% of global carbon emissions, and its fleets remain overwhelmingly diesel-powered.

Munro’s M-Series aims to change that. The company’s flagship model delivers a 1,000kg payload, 170 miles of real-world range, and is engineered specifically for extreme operational environments—from open-pit mines to military test ranges.

The first vehicles have already been delivered to Gleneagles Hotel and Denbighshire Council, and the company plans to scale up to 5,000 units per year within six years.

“This investment validates the critical need for zero-emission solutions in heavy industry,” said Russel Peterson, Co-founder and CEO of Munro EV.

“Mining companies, defence interests, and construction firms are actively seeking alternatives to diesel-powered vehicles. The M-Series delivers capability, durability, and sustainability—without compromising performance.”

Peterson added that Munro’s design also aligns with the UK Ministry of Defence’s Land Mobility Strategy, which aims to replace ageing Land Rover and Pinzgauer vehicles with cleaner, more capable options.

“Our M-Series can meet those requirements while being more capable, quieter and cleaner. This is not a lifestyle vehicle; it’s engineered from the ground up to perform in the harshest conditions,” he said.

Funding to fuel growth and innovation

The new £2m capital injection will be deployed to:
• Expand production line capacity at the Glasgow facility
• Recruit additional engineering and assembly staff
• Develop industry-specific vehicle variants
• Grow Munro’s sales and service network across target sectors

JP, Co-founder and CEO of Elbow Beach, praised Munro as “a standout example of Scottish advanced manufacturing,” adding: “Through its focused approach, Munro is delivering a capital-light solution that accelerates decarbonisation while driving meaningful commercial benefits for the real economy.”

Founded in 2019, Munro EV has carved out a distinctive position within the UK’s fast-evolving EV ecosystem. As major manufacturers focus on passenger cars, Munro has concentrated on low-volume, high-performance electric utility vehicles that meet the demands of industry, defence, and emergency services.

The company’s progress also supports the Scottish Government’s Net Zero Industrial Strategy, which targets job creation and technological innovation in sustainable manufacturing.

“Our vehicles are built to do hard work in hard places,” Peterson said. “Scotland has a long heritage of engineering and manufacturing excellence, and we’re proud to be building on that foundation to shape the next generation of electric mobility.”

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Munro EV secures £2m to scale electric 4×4 production for mining, defence and construction sectors

Rachel Reeves is poised to unveil a package of planning reforms and tax increases in her first full Budget on 26 November, as the Chancellor faces the daunting task of closing a £30 billion shortfall in the public finances.

The Treasury is said to be exploring a range of measures to stimulate growth while raising revenue, including restoring the bank surcharge to 8 per cent—a move expected to generate around £2 billion annually. The levy, imposed on bank profits on top of corporation tax, was cut to 3 per cent by the previous Conservative government in 2023 to protect the City’s competitiveness.

The Office for Budget Responsibility (OBR) is expected to assess the proposed planning shake-up as a potential long-term boost to growth, potentially adding £3 billion to the economy. That would marginally ease pressure on Reeves to deliver further tax increases, though officials concede additional revenue-raising measures are inevitable given the scale of the deficit.

At the heart of the Chancellor’s growth strategy are plans to overhaul what she has called Britain’s “outdated” planning regime. Reeves and Housing Secretary Steve Reed are pushing for changes to the Planning and Infrastructure Bill that would simplify approval for low-impact developments and restrict the use of judicial reviews that can delay major projects.

According to reports in The Guardian, the proposals could prevent judges from overturning approvals while legal challenges are still being heard and limit repeated reviews of the same project. However, such amendments risk complicating the Bill’s passage through the House of Lords, where peers may push back on curbing environmental safeguards.

A government spokesperson said the reforms were vital to “build the 1.5 million homes hardworking people need” and accelerate major schemes such as the Lower Thames Crossing.

Treasury eyes VAT expansion and bank levy hike

The Treasury is also examining ways to widen the VAT base, though no decision has been taken on raising the headline rate. Proposals have reportedly included extending VAT to currently exempt sectors such as private transport and some services. Health Secretary Wes Streeting has ruled out applying VAT to private healthcare, but officials have not dismissed other expansions.

Pressure has been mounting from trade unions to target the banking sector. The Trades Union Congress (TUC) has urged Reeves to reverse the Tory-era cut to the bank surcharge, estimating the change could raise £8 billion over four years.

However, the industry has warned against further taxation. UK Finance chief executive David Postings cautioned that additional levies could undermine growth, saying “efforts to boost the UK economy… would not be consistent with further tax rises on the sector.”

The opposition has seized on reports of fresh tax measures. Shadow Chancellor Sir Mel Stride told the Conservative conference that “more tax rises await” under Labour, accusing Reeves of having “blown a vast hole in the public finances”.

He added: “Under Labour, nothing is safe from the taxman—not your job, not your home, not your business, not even that which you wish to pass on to your children.”

Reeves, speaking at Labour’s conference in Liverpool last week, acknowledged that “tough choices” lay ahead but insisted she would keep taxes “as low as possible” amid global economic headwinds.

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Reeves to relax planning laws and target banks with £2bn tax rise in bid to stabilise public finances

As a member of Generation X, I grew up in the workplace with a simple rule: if your boss asked you to do something, you said “yes” and got on with it.

That was the culture of the time. We didn’t often stop to ask whether the process made sense, or if there was a better way of completing the task.

Today, I see something different from my younger colleagues. Generation Z, now entering the workforce in increasing numbers, is far less likely to nod along silently. Instead, they ask “why?” Why do we use this system? Why is the meeting structured this way?

At first glance, these questions can feel like pushback. For Gen X managers, who were trained to value quiet diligence, this may come across as defiance. But the truth is more nuanced — and, I would argue, more constructive.

Gen Z grew up in an era of instant information and constant change. They are used to finding answers at their fingertips and have little patience for “because that’s the way it’s always been done.” They expect clarity, purpose, and context. And in a world where businesses must adapt quickly, that perspective can be invaluable.

That’s not to say this cultural difference doesn’t create friction. Sometimes a task simply needs to be done, without a lengthy debate about its rationale. As leaders, it’s part of our role to balance the need for explanation with the need for execution.

But I’ve come to see that Gen Z’s instinct to ask “why” isn’t laziness or resistance — it’s engagement. They want to understand how their work contributes to the bigger picture. They want to know their effort has meaning and what they’re doing is worth it. And when we take the time to provide that context, we often uncover inefficiencies, redundancies, and opportunities that my generation might never have questioned.

There’s also a broader cultural element at play. Gen X entered the workforce at a time when job security often depended on keeping your head down and doing as you were told. If you chose to question the process or the decision this could be seen as rocking the boat or stepping on your colleagues toes. Gen Z, by contrast, has grown up in an environment where questioning authority is not only permitted but often expected — in education, in politics, and certainly in the digital world where hierarchies are flattened by access to information.

Gen Z are growing up in a time where they have been told to question everything. They’ve been told to speak up and challenge opinions and, if they disagree with something, they are encouraged to share their view.

This mindset shows up at work. When a Gen Z employee asks “why,” they are applying the same critical thinking skills they’ve used since childhood. To ignore that impulse is to waste one of their greatest strengths.

Still, integration isn’t effortless. I know some managers can feel drained by the constant need to explain. Some complain that the “why” slows progress and that they feel it undermines authority. Not every question deserves a long answer, and not every project can wait for debate. The skill, I think, lies in setting clear boundaries: encouraging curiosity while making it clear that, once a decision is made, then you need to get on board and move forward as a team.

What I’ve also noticed is that this divide isn’t as rigid as it seems. Many Gen X leaders are starting to adopt the “why” themselves, realising it’s a powerful tool for innovation. And many Gen Z workers are learning that sometimes the best answer to “why” is simply “because it needs to get done.” The cross-pollination of habits is, in fact, creating a healthier workplace culture.

So perhaps the divide isn’t really about “yes” versus “why” at all. It’s about timing. Gen X instincts push us to act swiftly, to deliver, to get results. Gen Z instincts push us to pause, to question, to refine. Both are essential. Execution without reflection can become stagnant and prevent a business from progressing whilst reflection without execution can become paralysis. The best organisations will be those that join together.

As an employer, I no longer see “why” as a challenge to authority. I see it as an invitation to think differently — and in today’s business environment, that’s not a threat. It’s an opportunity. When Gen X discipline meets Gen Z curiosity, we get something more than compliance or critique. We get progress.

That doesn’t mean the adjustment is always easy. There are and will continue to be many challenges that we will struggle with. I struggle with the shift, especially when it comes to attitudes toward work-life balance. When I started out, it was an unspoken expectation that you stayed late, worked weekends, and went the extra mile without much thought of reward. For many in Gen Z, those assumptions simply don’t apply. They value clear boundaries, and they are unapologetic about protecting their personal time. To a Gen X employer who grew up in a culture of long hours and sacrifice, this still catches me off guard but on reflection, perhaps they have something to teach us here too. Learning when to switch off, to set limits, and to enjoy a healthier balance is not a weakness.

The generational divide is not just about asking “why” versus saying “yes.” It’s also about rethinking what it means to work well, and to live well. As much as Gen Z has to learn from us, we have just as much to learn from them.

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Asking why vs. saying yes: the generational divide in the modern office

Aston Martin Lagonda has warned that it will remain loss-making through 2025 after another year of weaker-than-expected sales and further delays to its flagship Valhalla hypercar, sending shares in the British luxury carmaker tumbling.

In an unscheduled trading update, the company said it now expects annual sales to fall by nearly 10 per cent and losses to exceed previous forecasts, abandoning earlier commitments to become cashflow positive this year.

Shares fell more than 8 per cent to 74.65p on Monday, wiping out recent gains built on hopes of a sustained turnaround under chief executive Adrian Hallmark, who joined the Warwickshire-based manufacturer last year from Bentley.

Aston Martin cited “heightened challenges in the global macroeconomic environment,” including the impact of US tariffs, shifting Chinese luxury taxes, and supply chain strains, as key factors behind the shortfall.

“As a result of the heightened challenges in the global macroeconomic environment, including the ongoing impact of tariffs, the company now expects total wholesale volumes in full-year 2025 to decline by a mid-to-high single-digit percentage compared with 2024,” the group said.

Deliveries to dealers between July and September totalled 1,430 vehicles, around 13 per cent below the same period last year, missing earlier guidance that sales would hold steady.

Weaker demand in North America and Asia-Pacific, particularly China, was compounded by a reduction in high-margin “special” editions, which typically boost profitability.

The company confirmed that deliveries of its £850,000 Valhalla hypercar — its most high-profile launch in years — have again been delayed, with just 150 units now expected to reach customers by the end of 2025, fewer than previously pledged.

The setback is a blow to Aston Martin’s strategy of using ultra-luxury models to drive margins and restore credibility among investors following years of financial turbulence.

The group now expects to post operating losses before interest and tax of around £110 million, in line with the most pessimistic analyst forecasts. Its projection for positive free cashflow in the second half of 2025 has also been scrapped.

Aston Martin said it continues to face headwinds from “uncertainties over the economic impact from US tariffs and the implementation of export quotas” affecting UK manufacturers, as well as “changes to China’s ultra-luxury car taxes.”

The company also acknowledged potential supply chain disruptions following the recent cyberattack at Jaguar Land Rover (JLR), which shares several suppliers with Aston Martin.

Several of those suppliers are reportedly under financial pressure after JLR’s temporary shutdowns, raising concerns over the stability of the UK’s premium automotive supply base.

In response, Aston Martin has initiated an “immediate review of spending” and a broader reassessment of its product cycle and future development plans, hinting that upcoming electric and hybrid projects could be delayed.

“The global macroeconomic environment facing the industry remains challenging,” the company said. “We are reviewing our future product cycle plan in response to market and regulatory dynamics.”

The update underscores the difficulties facing Hallmark’s turnaround efforts as Aston Martin grapples with persistent losses, high leverage, and uneven demand across its core markets.

The profit warning marks a sharp reversal from earlier optimism that Aston Martin was on track for recovery. The company’s shares have now fallen more than 80 per cent from their 2021 highs, and analysts warn that any further delays to key models or production disruption could threaten the timeline for stabilising the business.

With new electrification rules looming, trade tensions rising, and luxury demand softening in China, Aston Martin’s latest warning suggests its road back to profitability remains a long one.

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Aston Martin issues profit warning as weak demand and Valhalla delays hit turnaround hopes