The key facts

  • Audi lowered its margin guidance to 3–5% after 5–7%, while the original expectation was 6–8%
  • Profit for the nine months through the end of September fell 41% to €1.22 billion
  • The company announced a plant in Georgia; a cut of 7,500 jobs was previously announced

Second profit forecast cut in a year

On Friday, Audi lowered its operating margin guidance for the second time this year: the company now expects 3–5% for the full year instead of the previous 5–7%. The original forecast for the year was 6–8% — both revisions come amid pressure from intense competition in China and US tariffs, AFP reports. For comparison: in the 2010s, the brand's margin was noticeably higher than current levels.

Profit decline and pressure on Volkswagen Group

Audi's profit for the nine months through the end of September fell by 41% — to €1.22 billion ($1.37 billion). 'Market and competitive conditions in the third quarter became significantly more difficult,' said CFO Jürgen Rittersberger on a call with journalists, adding that the company needs to 'intensify measures and set clear priorities.'

US plant and reaction in Germany

Unlike BMW and Mercedes-Benz, Audi has no plant of its own in the US, which makes it especially vulnerable to the Trump administration's tariffs. The company announced the construction of a new SUV plant in the state of Georgia; the announcement was made by CEO Gernot Döllner at a rally with US President Donald Trump, drawing sharp criticism from German unions and politicians. Rittersberger declined to say what incentives the US might have offered, noting only that talks with officials are ongoing and that Georgia's authorities will publish the agreements later.

Restructuring context

Audi's troubles add to the pressure on Volkswagen Group, which plans to cut 120,000 jobs across its ten brands by 2030. Audi previously announced a reduction of 7,500 jobs, and the long-term future of its plant in Neckarsulm in southern Germany remains uncertain. 'For us, entering the US is truly a decisive financial step,' Rittersberger emphasized.