Audi, value impact and China: working revenue collapses by 91% to 106 million | EUROtoday

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Audi reported a pointy decline in income within the third quarter. The automobile producer from Ingolstadt, jewel of the Volkswagen Group and as soon as money cow for the dad or mum firm, it reported a drop in working revenue of 91%, to 106 million euros. According to Audi’s chief monetary officer, Jürgen Rittersbergerthe decisive issue for the poor result’s the decline in gross sales and the “very intense price competition in Europe and China”.

Provisions totaling 1.2 billion euros for the Audi plant in Brussels, which the corporate plans to shut, additionally had a unfavourable influence. Profit after tax within the first 9 months was 2.4 billion euros, after 4.5 billion euros the earlier yr. Audi’s income within the third quarter was round 15 billion euros, 5.5 p.c lower than within the earlier yr.

Audi model gross sales fell 16 p.c to round 403,000 automobiles. On the opposite hand, the rise in gross sales of the posh model Lamborghini saved the group from a fair weaker consequence.

Rittersberger confirmed the annual forecasts already lowered in the summertime. As a consequence, Audi expects a decline in Group turnover from 70 to 63-68 billion euros and a lower within the revenue margin to 6-8%. In the primary 9 months, the Audi model offered 1.24 million automobiles, 11 p.c lower than the earlier yr. Things have gotten a lot worse, particularly within the United States. In China, Audi gross sales fell 8.5 p.c to 477,000 models.

Last week Audi stated it was in touch with a possible investor for its Brussels manufacturing unit. The web site, which employs round 3,000 folks, might be pressured to shut on account of excessive administration prices and low demand for the one electrical mannequin produced on web site.