Audi reported a sharp fall in profits for the first nine months and cut its forecast for the current financial year. From the group’s headquarters in Ingolstadt it was said, above all the market downturn in China was weighing on performance, particularly for vehicles with combustion engines. Intense competition and pricing pressure also exacerbated the situation. In immediate response, the company announced an expanded package of measures to cut costs and improve efficiency.
According to the company, operating profit fell significantly, particularly in the third quarter. Media reports, including those by Tagesschau and Tagesspiegel (German Press Agency, dpa), report that quarterly profit fell by around 87 per cent compared with the same period a year earlier. Audi points to noticeably weaker demand in its largest single market, China, and falling prices in key segments. Pressure from Chinese manufacturers is increasing in Asia and Europe, forcing price adjustments that are further squeezing margins.
The board says the measures are intended to strengthen competitiveness swiftly. They include stricter cost management, focusing investment on priority projects, and reducing complexity in the model range and operations. For the German sites in Ingolstadt and Neckarsulm the group says it will combine efficiency gains with investment in the future. Audi initially gave no details of possible staffing adjustments.
The assessment gives greater weight to external factors: China was a growth driver for years, and the current shortfall in demand is hitting combustion-engine vehicles particularly hard, while competition in electric cars is intensifying. Competitors’ price promotions are also putting pressure on revenue. Internal measures such as cost discipline and faster development cycles are intended to stabilise earnings quality in the short term.
The facts are: Audi has lowered its forecast and approved a tougher cost-cutting programme. Attributed assessments come from the company announcement; the scale of the decline was reported by Tagesschau and Tagesspiegel (dpa). Forecasts concern the expected development of margins and earnings through to the end of the year and depend largely on market movements in China, competitors’ pricing strategies and the implementation of internal measures.
Editor: Mira Cadena (Article created with AI assistance).