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Audi has lowered its financial forecast for the second time due to China’s fierce price war and US tariff pressure. Its profit fell 41% from January to September, which not only caused its own performance to drop, but also caused major challenges to Volkswagen Group’s restructuring plan.
Germany Audi, a premium car brand owned by automobile group Volkswagen, has been hit by fierce price-cutting competition in the Chinese market and the US.Tariff Amidst the pressure, Fox today revised its full-year profit outlook for the second time, posing major challenges to Fox’s operational revitalization.
Agence France-Presse reported that Audi had won firstinterest rate The forecast was cut from 6% to 8% at the start of the year to 5% to 7%, and now to 3% to 5%, well below 2010 levels.
Audi also announced today that its profit from January to September this year fell by 41% from the same period last year to 1.22 billion euros (about 1.37 billion US dollars). Chief Financial Officer Juergen Rittersberger said: “The market and competitive environment became much more difficult in the third quarter.”
Audi and fellow German luxury sports car maker Porsche have been reliable sources of huge profits for Volkswagen, which owns 10 brands. As part of the restructuring, Volkswagen plans to lay off 120,000 people worldwide by the end of 2030; Now Audi’s difficulties have put Volkswagen under greater pressure.
In view of the huge setback in the Chinese market, German automakers have started paying more attention to the American market. But unlike rivals BMW and Mercedes-Benz, Audi has factories in the United States, making it more sensitive to Trump’s tariff policies.
Audi has recently announced that it will set up a new plant in Georgia, US to produce sports utility vehicles (SUVs).
Summary FAQ
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The operating environment deteriorated significantly in the third quarter, primarily due to increased competition in the Chinese market, increased price cutting pressures and cost and sales risks due to US tariff policies. Therefore, Audi has lowered its full-year profit forecast for the second time.
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Audi previously cut its full-year profit margin forecast to 5% to 7% from 6% to 8%. This time it has been reduced to 3% to 5%, which is far below the profit level of 2010.
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Audi and Porsche have always been important sources of profit for Volkswagen Group. Now that Audi’s performance has deteriorated, Volkswagen’s operational revival and layoff and restructuring plans will come under greater pressure.
