Audi 3rd quarter net profit 87%↓… The establishment of a new U.S. factory is also unclear.

As the recession in the German automobile industry continues, Volkswagen Group's affiliate Audi also posted poor performance in the third quarter.

According to dpa news agency, Audi announced in its earnings announcement on the 30th (local time) that its net profit in the third quarter of this year was 95 million euros (about 142 billion won), down 87% from the same period last year.

The parent company Volkswagen Group announced the previous day that it had a net loss of 5.822 billion euros (about 8.69 trillion won) in the third quarter of this year.

Audi lowered its operating profit margin forecast for this year from 5 to 7 percent to 3 to 5 percent, saying that market conditions are worsening and competition and price pressure are intensifying, especially in China.

Audi, which owns luxury car brands Bentley and Lamborghini and motorcycle manufacturer Ducati, has no production plants in the United States and was hit hard by the automobile tariffs imposed by the U.S. Donald Trump administration. Last year, customs costs alone amounted to 1.2 billion euros (about 1.8 trillion won).

Audi recently announced plans to invest $4.2 billion (approximately 5.6 trillion won) to build a new factory in Georgia, USA. The business magazine Handelsblatt reported that the company received a verbal promise from the U.S. government that it would reduce automobile tariffs from 15% to 10% if it builds a factory there.

However, it is unclear whether construction of the U.S. factory will be finally approved by the group's board of directors. Audi CEO Gernot Djolner received strong criticism both inside and outside the company when he went up to the podium and gave a speech at President Trump's midterm election campaign on the 24th.

Volkswagen Group has an internal guideline prohibiting joint events with politicians three months before the election. Audi explained that it was for the company's benefit and not to support politicians, but the controversy has not subsided.

German Environment Minister Carsten Schneider criticized Audi's plan to assemble mid-size sports utility vehicles (SUVs) at its U.S. factory, saying, "While the world is moving toward the era of electric vehicles, Audi is betting on fossil fuels, in other words, on a dead horse." A group official said there is nothing more than a "memorandum of understanding" between Audi and the U.S. government and said, "No one knows what will happen if the Republican Party loses in Georgia."