By Dominic Chopping
Audi backed its full-year financial forecasts, but said the difficulty in gauging the impact of tariffs means the guidance doesn’t include any potential hit from the duties.
The German company joins a growing list of automakers who in recent weeks have inserted similar caveats in their financial outlooks as they struggle to get a grip on U.S. President Trump’s dynamic trade policy.
Stellantis recently suspended its targets for the year, while Volkswagen–Audi’s owner–said its expectations remained though exclude the impact of new tariffs. Mercedes-Benz also held its pre-tariff guidance, while noting results would be lower if current tariffs remain in place.
In a statement Monday, Audi said it still expects to report revenue this year of between 67.5 billion and 72.5 billion euros ($76.27 billion-$81.92 billion), with an operating margin of 7% to 9%, with net cash flow between 3 billion and 4 billion euros.
With the current high volatility, financial implications of import tariffs, particularly in the U.S., can’t be conclusively assessed, while the financial repercussions of a recent deal with labor leaders are currently being evaluated, it said. The company agreed measures in March that aim to increase productivity, speed and flexibility at its German sites while outlining plans to cut up to 7,500 jobs by 2029.
As a result, the forecast doesn’t yet include these two factors.
“The year will continue to be very challenging due to the global economic conditions,” Chief Executive Gernot Dollner said.
Audi reported first-quarter profit after tax of 630 million euros, down from 736 million euros, reflecting the continuing challenges of the global economic downturn, intensified competition and political uncertainties.
Revenue rose 12% to 15.43 billion euros.
The company said deliveries of Audi-branded cars fell 3.4% to 383,401 vehicles, led by a 7% decline in China as the region continues to suffer from intense competition. Audi is focusing on rapidly expanding its portfolio of electric vehicles and strengthening its setup in China with market-specific models, production and local partners.
Audi deliveries in North America fell 2.1%, mainly due to model changeovers, while deliveries in Europe, excluding Germany, fell 3%. Germany saw deliveries rise 4.8%.
It delivered a 30% increase in Audi electric car deliveries globally on year, to 46,371 vehicles.
Write to Dominic Chopping at [email protected]
(END) Dow Jones Newswires
05-05-25 0326ET
