Audi has narrowly avoided losses in the third quarter, reporting a net profit of only €95 million. This figure represents an 87% decrease compared to the same period last year, when profits stood at €718 million. The financial downturn affects the entire division, which includes the core brand alongside Lamborghini, Bentley, and Ducati. Over the first nine months of the year, Audi generated a profit of €1.22 billion and revenue of €42 billion, both showing significant declines. Consequently, the company has lowered its full-year forecast, although Finance Chief Jürgen Rittersberger indicated that the fourth quarter is expected to show improvement.
The company attributes the poor performance to several factors, including a market collapse in China, particularly for internal combustion engine vehicles, and intensifying competition from Chinese manufacturers exporting to Europe. Additional pressures stem from ongoing instability in the Middle East driving up energy costs, as well as US tariffs. While these challenges impact all German automakers, Audi is hit harder due to its lack of a manufacturing plant in the United States and ongoing model transitions. For comparison, competitor Mercedes-Benz reported a third-quarter profit of €1.52 billion, while BMW is scheduled to release its figures next week.
Rittersberger emphasized that the current metrics demonstrate an urgent need for action at Audi that cannot be delayed. He stated that while existing measures are taking effect, they must be intensified due to enormous competitive pressure. The strategy involves strict cost discipline, reducing complexity, and increasing structural efficiency. However, the company remains vague regarding the specific implications for German locations. Building on a future agreement signed last year, which included the elimination of thousands of jobs in Germany, Audi plans to develop further measures to secure competitiveness and employment through dialogue with the works council.
Current negotiations focus on additional cost savings, with the potential closure of the Neckarsulm plant under consideration. In early October, Audi invoked a "bad weather clause" from a 2019 agreement, mandating negotiations between management and the works council when economic conditions deteriorate significantly. Compounding these financial issues is a political controversy surrounding CEO Gernot Döllner. During discussions regarding a planned factory in Georgia, Döllner appeared alongside US President Donald Trump at a campaign event just before the November 3 midterm elections.
Trump announced Audi's plans to build the facility before inviting Döllner on stage to express gratitude for the support. This appearance has sparked intense criticism and calls for Döllner's resignation, with critics alleging he violated company rules prohibiting such political engagements. Döllner defended his actions as being in the company's interest, stating they were invited to present their plans publicly alongside the US President. He argued that declining such an invitation would be disrespectful to the office of the presidency.
Sources: Süddeutsche Zeitung.