Volkswagen's premium brand Audi lowered its full-year profitability guidance today for the second time this year, as it grapples with US import tariffs and a costly transition to electric vehicles weighing on its margins.
The German automaker now expects an operating margin of between 4% and 6%, compared with the earlier range of 5% to 7%. It maintained its revenue outlook for the year.
US tariffs cost Audi 850 million euros in the first nine months with the full-year figure projected to reach 1.3 billion euros.
Like Volkswagen's Porsche unit, Audi has no US plants, but CFO Juergen Rittersberger confirmed plans to decide later this year on whether to open one.
Volkswagen swung to a hefty loss in the third quarter, hit by billions of euros in additional tariff payments this year and a costly strategy reversal at Porsche.
Audi's full-year guidance assumes a stable supply of semiconductors and related components, the company said, as a looming supply crunch due to a stand-off over Dutch chipmaker Nexperia threatens European auto production.
"We are closely monitoring the situation, but at the moment everything is going according to plan," Rittersberger said.
In the first nine months, Audi achieved an operating margin of 3.2%, compared with 4.5% last year, impacted by tariffs, restructuring and carbon emissions regulations.
The carmaker said it plans to significantly reduce complexity and optimise costs.
"We are addressing the challenging overall economic situation and intensified competition with consistent cost control," he said.
