In the third quarter, things went significantly worse for the car manufacturer Audi than in the same period last year. After taxes, the VW subsidiary only earned 95 million euros, as the company announced. That was 87 percent less than in the same period last year, when profit was still 718 million euros. This means that Audi is sliding ever deeper into financial crisis.
According to the information, business in China is particularly affected. The combustion engine business in particular has deteriorated there, said CFO Jürgen Rittersberger. The increasing intensity of competition and the increasing export pressure from Chinese manufacturers on the European market are also having a negative impact. “In addition, there are ongoing uncertainties as a result of the situation in the Middle East and the associated increase in energy costs as well as US tariffs,” Audi said.
CFO: “The need for action at Audi is high”
After nine months, Audi made a profit of 1.2 billion euros and sales of 42 billion euros. Both key figures therefore fell sharply. In view of the extremely poor third quarter, the group is now also adjusting its forecast for the full year downwards. Audi now only expects a return on sales of between three and five percent with revenues between 55 and 59 billion euros.
“The key figures clearly show that the need for action at Audi is high and will not tolerate any delay,” said Rittersberger. The environment worsened considerably, especially in the third quarter. "Our measures are working, but due to the enormous competitive pressure we have to strengthen them. That's why we rely on consistent cost discipline, reduce complexity and increase the efficiency of our structures."
Audi expects a stronger fourth quarter
After the profit slump in the first nine months, Audi is hoping for an upturn in business at the end of the year. “We expect a significantly stronger fourth quarter,” said Rittersberger. His company is expecting impetus, among other things, from the new SUV models Q7 and Q9 on the US market.
This is the crisis that all German manufacturers are facing, but the Ingolstadt ones are being hit particularly hard. For comparison: Competitor Mercedes made a profit of 1.52 billion euros in the third quarter. BMW will not present figures until next week.
Uncertainty about German locations
Audi left it open what the development means for the German locations. With the future agreement concluded last year, important measures were initiated, it was said. "Based on this, further measures should be developed to ensure sustainable competitiveness and employment. The necessary steps for this should be developed in dialogue with the general works council."
The future agreement included, among other things, the reduction of thousands of jobs in Germany. There is currently a struggle for further savings. There is even talk of the closure of the Neckarsulm plant.
Criticism after Döllner's appearance with Trump
The attempt to get the problems in the USA under control has also caused Audi another crisis. Audi boss Gernot Döllner made a surprise appearance with US President Donald Trump at the weekend on the sidelines of negotiations to build a plant in the US state of Georgia. He announced Audi's plans at a campaign event.
Since then, the criticism of Döllner has not stopped. Critics accuse him of violating Audi's own rules, which exclude such appearances. Döllner defended his appearance in the interests of the company. Because of the matter, the car manufacturer's supervisory board will also meet for an unscheduled meeting in the afternoon.
