China competes, U.S. tariffs attack, Audi cuts financial forecast again, hurts Volkswagen Group
Affected by price-cutting competition in the Chinese market and U.S. tariff pressure, Audi lowered its full-year profit margin forecast to 3% to 5%.
Quick Look
- Due to fierce competition in the Chinese market and pressure from U.S. tariffs, Audi, a brand of Germany's Volkswagen Group, has revised its full-year profit outlook down for the second time to 3% to 5%.
- Profit fell sharply by 41% in the first three quarters of this year, exacerbating the overall operating pressure and layoffs and restructuring challenges of Fox Group.
AI-generated summary
Why It Matters
Audi and Porsche were once the main pillars of Volkswagen Group's profits. Fox Group is currently promoting global layoff plans in response to market changes.
(Central News Agency, Frankfurt, comprehensive foreign news report on the 30th) Audi, the premium car brand of German automobile group Volkswagen, has been hit by fierce price competition in the Chinese market and U.S. tariff pressure. Today, it revised its full-year profit outlook for the second time, making Volkswagen face greater challenges in reviving its operations.
Agence France-Presse reported that Audi had previously revised its profit margin forecast for this year from 6% to 8% at the beginning of the year to 5% to 7%, and now it has lowered it to 3% to 5%, which is far lower than its level in the 2010s.
Audi also announced today that its profit from January to September this year dropped sharply 41% from the same period last year to 1.22 billion euros (approximately NT$44.4 billion). Chief Financial Officer Juergen Rittersberger said: "The market and competitive environment have become 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. In order to restructure, Volkswagen has planned 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 heavy blow in the Chinese market, German automakers have shifted to pay more attention to the US market. But unlike rivals BMW and Mercedes-Benz, Audi has factories in the United States, making it more vulnerable to Trump's tariff policies.
Open Questions
- Will Volkswagen Group's layoff plan be accelerated due to Audi's deteriorating performance?
- What specific measures will Audi take to deal with the risk of US tariffs?
