Profit at German carmaker Volkswagen‘s subsidiary Audi more than doubled in the third quarter, mostly thanks to a very weak performance in the same period last year, according to the manufacturer’s latest financial results released on Friday.
After-tax profit at group level rose to €718 million ($830.4 million) between July and September, 2.6 times the previous year’s figure, but only a slight improvement on the €716 million earned in the second quarter.
In the third quarter of 2024, Audi’s profit after tax slumped to €272 million, partly due to restructuring expenses due to the closure of its Brussels plant.
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In 2023, Audi posted a profit of €1.2 billion in the third quarter.
In light of the latest results, the carmaker – which also owns the Bentley, Lamborghini and Ducati brands – has significantly lowered its forecast for returns.
The Ingolstadt-based manufacturer is struggling in the Chinese market due to fierce domestic competition, while US tariffs are also weighing on results.
According to chief financial officer Jürgen Rittersberger, the tariffs imposed by US President Donald Trump have cost Audi €850 million in the first three quarters, and he expects the figure to reach €1.3 billion by the end of the year.
Unlike German rival BMW, for example, Audi does not have its own plant in the US, and is deciding whether to build one to turn things around long-term.
“We are responding to the challenging economic situation and increased competition with consistent cost-cutting measures and are continuing to work on our financial performance,” said Rittersberger.
In March, Audi announced that it would cut up to 7,500 jobs in Germany by 2029.
Source: dpa
