The CFO of Audi, Juergen Rittersberger, stated that the Volkswagen Group’s premium brand will have to collaborate with the parent company to initiate a complete restructuring. The need for realignment concerns both the business model and large-scale structural interventions, in light of the increasing difficulties highlighted by the second quarter results. Rittersberger, according to Reuters, linked the pressure to act faster to the growing global challenges, emphasizing that to remain competitive internationally it is essential to act in a coordinated manner with Volkswagen.
Audi collaborates with Volkswagen
Meanwhile, Audi is already working on reducing production capacity, in response to the drop in demand in crucial areas such as China and the USA. The production scenario also becomes more delicate because the Neckarsulm plant, in southwest Germany, is one of four German sites at risk of closure after 2030, according to Volkswagen, mainly due to high costs, increasing Chinese competition, and tariff pressures. In this context, Neckarsulm operates with an annual capacity reduced to 225,000 units (about 75,000 less than in previous years) and the company has agreed to eliminate the night shift, limited to the production of internal combustion engine vehicles.
Reduction of production capacity
On the economic front, Audi Group’s numbers are down and far from the set targets. The group’s revenue, which includes brands such as Lamborghini, Bentley, and Ducati, decreased by 12.5% year-on-year, amounting to 15 billion euros in the second quarter. Operating profit also fell by 3% to 533 million euros, with a margin of 3.6%, below both Audi’s target for the year (between 5% and 7%) and the already revised downward forecasts, citing difficulties in China and the conflict in the Middle East. Meanwhile, Volkswagen, which published its second-quarter results on Friday, recorded a 9.5% drop in group profit.
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