German luxury automaker Audi has reported a significant 33% drop in post-tax profits for 2024, falling to €4.2 billion, marking the second consecutive year of financial decline for the Volkswagen subsidiary.
The company attributed the sharp decline to challenging market conditions and the recent closure of its Brussels plant, which had produced the high-end Q8 e-tron.
Audi’s annual revenue also saw an 8% decrease, amounting to €64.5 billion. During a press conference, Chief Financial Officer Jürgen Rittersberger acknowledged the difficulties the company faced, particularly in maintaining operational efficiency.
“We were also forced to make the regrettable decision to close our Brussels plant,” Rittersberger stated, emphasizing the necessity of cost-cutting measures to navigate the current economic climate.
Job Cuts and Market Challenges
As part of its cost-reduction strategy, Audi announced plans to cut 7,500 jobs in Germany by the end of 2029.
The move follows a broader trend in the global automotive sector, where manufacturers are grappling with weakened demand, particularly in China, and increasing competition from both legacy brands and emerging electric vehicle (EV) manufacturers.
“A year ago, we predicted 2024 would be a transitional year. Unfortunately, that has completely materialized,” said CEO Gernot Döllner.
He stressed that market conditions remain tough, with competition intensifying in China—the world’s largest automotive market—where Audi has struggled to maintain its foothold against domestic EV manufacturers.
Döllner highlighted the company’s strategy to counteract these challenges, pointing to new model launches and restructuring efforts aimed at revitalizing sales.
“More than 20 new models will be launched in 2025 and 2026,” he confirmed, underlining Audi’s ambition to stay competitive in the evolving industry.
Looking Ahead: Cautious Optimism for 2025
Despite the ongoing financial setbacks, Audi executives remain cautiously optimistic about 2025. The company anticipates a rise in sales, revenue, and overall profitability, driven by its upcoming vehicle lineup.
However, CFO Rittersberger warned that recovery would not come easily. “Markets will remain highly competitive, and consumers will stay cautious, especially in China.”
Audi’s restructuring efforts include a stronger focus on electric mobility, aligning with Volkswagen Group’s broader electrification strategy. The company aims to accelerate the transition towards EVs while optimizing production efficiency and cost management.
Tariffs and Global Trade Risks
Beyond market dynamics, Audi faces additional risks due to potential tariff increases in the United States.
While company executives believe the impact will be limited in the short term, higher tariffs could force the automaker to raise prices for U.S. consumers, potentially affecting demand in one of its key markets.
As Audi navigates its current financial struggles, the company remains focused on strategic investments and operational adjustments to regain stability.
With an ambitious product rollout and continued cost-cutting measures, the automaker hopes to reverse its declining trend and strengthen its position in the increasingly competitive global auto industry.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members
