Audi’s Earnings Drops By 37.5 Percent

German car manufacturer Audi, part of the Volkswagen Group, achieved a net profit of 1.3 billion euros in the first half of the year, which is 37.5 percent less than in the same period last year.

Sales revenue amounted to 32.6 billion euros, a good five percent more than a year ago, the company announced today. The company cited new US tariffs, restructuring costs, and weaker business in China as reasons for the drop in profits.

“The situation remains very challenging. In addition to fierce competition, the financial result was affected by drastically higher US tariffs and restructuring costs. In some markets, uncertainty about the incentive program for battery electric vehicles has reduced consumer demand. At the same time, we are implementing the largest transformation in the company’s history,” CEO Jürgen Rittersberger wrote in a message published on the company’s website.

The Audi Group, which in addition to Audi includes the Bentley, Lamborghini, and Ducati brands, delivered around 794,000 vehicles in the first six months of the year, a decline of around six percent compared to the same period last year. Deliveries of fully electric Audi vehicles rose by 32 percent to more than 101,000.

Audi has cut its annual sales forecast by 2.5 billion euros to 65 billion to 70 billion euros. However, the forecast does not take into account the EU-US tariff agreement, which imposes a 15 percent tariff on almost all EU exports to the US, including cars and car parts.

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