The Audi Profit Drops 14%

Audi makes significantly less profit at the start of the year

Audi started the year with a decline in profits. The company cited the uncertain political situation. The automaker is considering producing electric cars in the US, but this is not a reaction to Trump’s tariff policy.

The crisis in the automotive industry is also reflected in Audi ‘s figures . The company earned 14.4 percent less in the first quarter than in the already weak prior-year period. The bottom line was a profit of €630 million at the Audi Group level. This includes the core Audi brand, Bentley , Lamborghini , and Ducati.

Audi currently attributes the further decline to intensified competition and political uncertainty. “The year will remain very challenging due to the global economic environment,” said CEO Gernot Döllner.

The fact that the decline was not even more pronounced was due, among other things, to the extremely weak comparative figures from the same period last year. At that time, Audi had more than halved its profits – partly due to a shortage of parts for important and profitable engines. In addition, strong business at its subsidiary Lamborghini supported the result.

The core Audi brand

The core Audi brand, on the other hand, continues to weaken and achieves only very low margins. In addition, the company had to set aside provisions for the tightened CO₂ regulations, among other things, amounting to a low three-digit million amount, according to CFO Jürgen Rittersberger.

CEO Döllner is now hoping for the company’s new models. The model initiative is now “gradually arriving in the global markets,” he said. At the same time, Audi has “taken decisive steps toward the repositioning of our company.”

Döllner also includes massive job cuts in Germany. In March, Audi announced that it would eliminate up to 7,500 jobs in its home market by 2029 and reduce employee profit-sharing for several years. The job cuts could begin as early as the current second quarter.

Parent company Volkswagen reported poor first-quarter figures last week: Profits plummeted by nearly 41 percent to €2.2 billion. Competitor Mercedes-Benz also had a weak start to the year, with BMW releasing its figures on Wednesday.

German automakers are struggling in several key markets. In China, competition from domestic brands, and thus price competition, is becoming increasingly fierce.

In addition, US President Donald Trump ‘s tariff policy threatens to cause disruption. At the end of March, he announced tariffs of 25 percent on cars and components imported into the US.

Audi considers production in the USA

Audi is also considering building electric cars if it plans to produce in the US. Chief Financial Officer Rittersberger said a decision on a production facility will be made this year. He declined to comment on potential models. “We will also look very closely at electric cars, because that remains our goal in the US,” Rittersberger added. The decision for a new plant will not be based on US President Trump’s recent auto tariffs, but must be a strategic fit, he emphasized.

The Volkswagen subsidiary Audi currently does not have its own production facility in the USA. The company imports the Q5 model from Mexico, and the other models from Europe. The company is monitoring the situation very closely, Rittersberger said. The situation changes weekly. Audi has several options for counteracting this, including purchase incentives, adjustments to production planning, and higher prices. “At the moment, we are observing how the market develops.”

The German automotive industry is particularly export-oriented and has highly globalized supply chains, making it particularly vulnerable to sharply rising tariffs. This was also reflected in the latest figures from the Munich-based Ifo Institute on sentiment in the automotive industry.

At minus 30.7 points, the business climate in the sector fell further in April. “The US tariffs that came into effect at the beginning of April virtually nipped initial positive business developments in the bud, especially in the European market,” said Ifo expert Anita Wölfl.

Production in the USA is an issue for Audi

Audi is also considering building electric cars if it considers production in the US . Chief Financial Officer Jürgen Rittersberger says a decision on a production facility will be made this year. He declined to comment on potential models. “We will also look very closely at electric cars, because that remains our goal in the US,” Rittersberger added. The decision for a new plant will not be based on US President Donald Trump’s recent auto tariffs, but must be a strategic fit, he emphasized.

According to “Automobilwoche,” three locations are being considered for production in the USA. The electric Q4 e-tron or its successors could be built at the Volkswagen plant in Chattanooga, Tennessee, where the VW sister model ID.4 rolls off the assembly line. For the luxury Q8 e-tron, the factory for the new Scout brand, which is currently being developed in South Carolina, could be considered, the source said, citing insiders. For the Q6 e-tron, the scenario calls for finding a third location.

Audi, a Volkswagen subsidiary, currently does not have its own production facility in the United States. The Ingolstadt-based company imports the Q5 SUV from Mexico, and the other models from Europe.

VW subsidiary with losses: Audi’s quarterly profit falls by 14 percent

The VW subsidiary Audi will earn even less at the beginning of 2025 than in the weak prior-year quarter. This happened despite an increase in sales. Now, the company in Ingolstadt is hoping for the new models.

2024 was supposed to be the year of transformation for Audi, but the VW subsidiary remains mired in crisis at the beginning of 2025. The automaker earned significantly less in the first quarter than in the already weak prior-year period.

Audi only achieves quarterly profit of 630 million euros 

The bottom line was a profit of €630 million at the Audi Group level, which includes the core brand as well as Bentley, Lamborghini, and Ducati. This was 14.4 percent less than a year earlier. Revenue increased significantly in 2025: Audi generated €15.53 billion, compared to €13.73 billion in the same quarter of the previous year.

Audi: Reason for weak profits are also “political uncertainties”

Audi is currently attributing the further decline to intensified competition and political uncertainty. “The year will remain very challenging due to the global economic conditions,” said CEO Gernot Döllner. The top manager is likely referring to the high US import tariffs on cars announced by President Donald Trump. The group’s parent company, Volkswagen, is also suffering from declining profits.

The fact that the decline was not even more pronounced was due, among other things, to the extremely weak comparative figures from the same period last year. At that time, Audi had more than halved its profits – partly due to a shortage of parts for important and profitable engines. In addition, strong business at its subsidiary Lamborghini supported the result. 

Costs for CO2 provisions burden Audi’s planned job cuts

The core Audi brand, on the other hand, continues to weaken and achieves only very low margins. In addition, the company had to set aside provisions for the tightened CO2 regulations, among other things, amounting to a low three-digit million amount, according to CFO Jürgen Rittersberger. 

CEO Döllner is now hoping for the company’s new models. The model initiative is now “gradually arriving in the global markets,” he said. At the same time, Audi has “taken decisive steps toward the repositioning of our company.” 

This also includes massive job cuts in Germany. In March, Audi announced that it would eliminate up to 7,500 jobs in its home market by 2029 and reduce employee profit-sharing for several years. The job cuts could begin as early as the current second quarter. 

China no longer brings in as much money as it used to

It had already become apparent that the figures would not be good – partly due to a slight decline in sales. This was due to ongoing problems in China. The Car Audi, like its competitors BMW and Mercedes-Benz, is suffering from fierce competition there. Audi CFO Rittersberger spoke of “very intense price competition.” Audi earned €170 million from its Chinese business – slightly less than a year ago.

The new models recently launched by Audi were not enough to reverse the downward trend. Rather, the model changes initially weighed on earnings due to the associated costs. Revenue, on the other hand, recently rose relatively significantly – from €13.7 billion in the first quarter of 2024 to €15.4 billion.

Parent company Volkswagen reported poor first-quarter figures last week: Profits plummeted by nearly 41 percent to €2.2 billion. Competitor Mercedes-Benz also had a weak start to the year, with BMW releasing its figures on Wednesday. 

Donald Trump’s tariff policy weighs on Audi

German automakers are currently struggling on several fronts. In China, a key market for them, competition from domestic brands is becoming increasingly fierce, and with it, price competition. Due to the strained economic situation, wealthy consumers there have been buying fewer foreign premium and luxury cars for some time. Furthermore, the tariff policy of the new US President Donald Trump is weighing on the outlook, even though it was only slightly noticeable in the first quarter. 

The German automotive industry is particularly export-oriented and has highly globalized supply chains, making it particularly vulnerable to sharply rising tariffs. This was also reflected in the latest figures from the Munich-based Ifo Institute on sentiment in the automotive industry.

Audi is also rather cautious in its forecast. While the company is sticking to its previous targets—revenue between €67.5 billion and €72.5 billion and an operating return on sales between 7 and 9 percent—these figures do not include the effects of the US tariffs or the job cuts.

Only 1.5 percent – ​​Audi’s margin is not coming out of the basement

Although sales increased significantly, the VW subsidiary is earning even less than in the weak prior-year quarter. Now, the company in Ingolstadt is pinning its hopes on the new models.

A new era was supposed to begin for Audi this year. With a large-scale model offensive, a growing share of electric vehicles, and a fundamental restructuring of the company, the VW subsidiary wanted to set a course for the future. But at the beginning of 2025, there is little sign of this. The Ingolstadt-based premium manufacturer continues to suffer from weak earnings – and is losing ground in key markets.

As the company announced on Monday, Audi achieved an operating return on sales of only 1.5 percent in the first quarter of this year – a minimal increase compared to 2024, although Ingolstadt is actually aiming for a margin of seven to nine percent this year.

A bright spot is Audi’s electric vehicle deliveries, which increased by 30 percent. However, electric models have so far had lower margins than combustion-engine vehicles.

Volkswagen’s premium subsidiary is under enormous pressure in its most important single market, 
China. Within the VW Group, Audi is also one of the biggest losers from US President Donald Trump ‘s tariff policy . Just like Porsche, Audi does not have its own factory in the USA. However, the brand’s cars are less price-elastic than those from Porsche. And the concentration risk is high: Audi imports its best-selling model, the Q5 SUV, from Mexico.

Conclusion: In Germany, the Audi A3 is the most popular

In 2024, Audi generated revenue of €64.5 billion and profit of €3.9 billion. The Group sold 1.693 million vehicles. 

Audi employed approximately 88,600 people worldwide at the end of 2024. The Ingolstadt site, which is also the headquarters of Audi AG, had approximately 40,000 employees.

According to Statista , the most successful Audi models in Germany in 2024 were:

• A3 (30,700 vehicles)
• A4
• A6

The number of  new Audi registrations in Germany  fell to around 202,300 vehicles in 2024. Worldwide, the most successful Audi model was the Q5, with 297,900 deliveries. Donald Trump’s import tariffs are also likely to depress Audi sales. In the US, companies are beginning to complain about a slowdown in economic growth. 

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Sources used:

• With material from the News agencies  dpa and AFP, ntv.de, Reuters news agency, BBC News and CNN reports. The content has been independently analyzed and rewritten to provide original insights.

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