Carmaker Audi Cuts Outlook Again on China, US Woes
Audi lowered its annual margin target to 3% to 5% after profit fell 41% in nine months.
- Audi lowered its 2026 revenue forecast to €55 to €59 billion and cut profit margins to 3% to 5% on Friday, as CFO Jürgen Rittersberger attributed the decline to fierce competition in China and costly US tariffs.
- Market conditions became "significantly more difficult in the third quarter," Rittersberger said, adding the company must "intensify measures and set clear priorities" to address performance issues exacerbated by these regional headwinds.
- To mitigate tariff exposure, Audi CEO Gernot Döllner announced a $4 billion investment in a new Georgia factory expected to create 4,500 jobs, a move unveiled during a rally with President Donald Trump last Saturday.
- Volkswagen Group faces mounting pressure as it plans to cut 120,000 jobs globally by 2030, while Audi separately confirmed plans to eliminate 7,500 jobs, leaving the future of its Neckarsulm plant uncertain.
- Negotiations continue regarding potential tariff sweeteners for the Georgia plant, a project Rittersberger described as a "decisive financial step" to help the automaker stabilize operations.
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80 Articles
The company expects an annual revenue of 55-59 billion euros instead of the previously projected 58-63 billion euros.
The car manufacturer Audi recorded a significant break in profits in the third quarter. After taxes, the VW subsidiary earned only EUR 95 million, as the company reported. This was 87 percent less than in the same period of the previous year, when the profit was still EUR 718 million.
(Berlin=Yonhap News) Correspondent Kim Gye-yeon = Amid the continuing recession in the German automotive industry, Audi, a subsidiary of Volkswagen Group, also posted poor results in the third quarter.
German carmaker Audi, part of the Volkswagen Group, is struggling with a worsening crisis. Profits plunged 87 percent in the third quarter, and the company barely managed to stay in the black. The poor results have led to a reduction in its full-year outlook, additional cost-cutting measures and the future of some of its German production sites being uncertain. Audi CEO Gernot Döllner has come under fire for speaking at a rally for US President …
The house of the four rings avoids red for a breath, but the margin stops at 95 million euros after taxes, compared to 718 million of the same period 2025. They also weigh duties and the Middle East. The manager bets on quality and emerging markets
Audi has reduced its projections for the year and has promised to intensify measures aimed at increasing competitiveness, in a scenario of deterioration of market conditions. Exclusive material for subscribers. To have full access, access the link of the material and register.
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