Audi has again lowered its full-year profitability guidance to 4-6% due to US import tariffs and the expensive transition to electric vehicles.Volkswagen’s premium brand Audi lowered again its full-year profitability guidance on Friday, as it grapples with US import tariffs and a costly transition to electric vehicles weighing on its margins.
The Ingolstadt-based company now expects an operating margin of between 4 per cent and 6 per cent, compared with the earlier range of 5 per cent to 7 per cent. The company kept its revenue outlook for the year.
Parent Volkswagen swung to a hefty loss in the third quarter, hit by billions of euros in additional tariff payments this year and a costly strategy reversal at its other subsidiary Porsche.
Audi’s full-year guidance assumes a stable supply of semiconductors and related components, the company, as a looming supply crunch due to a stand-off over Dutch chipmaker Nexperia threatens European auto production.
In the first nine months, Audi achieved an operating margin of 3.2 per cent, compared with 4.5 per cent last year, impacted by tariffs, restructuring and carbon emissions regulations.
The carmaker plans to significantly reduce complexity and optimise costs, it added.
“We are addressing the challenging overall economic situation and intensified competition with consistent cost control,” CFO Juergen Rittersberger said.
