Audi Group third-quarter profit plunges 91%

Volkswagen’s struggles are well known, but the Audi Group also faces a challenging market, a highly competitive environment and limited parts supplies. These and other problems have wreaked havoc, with sales of Audi, Bentley and Lamborghini cars falling 10.9% in the first nine months of the year.

The Audi brand was particularly hard hit, with U.S. sales falling 16.8% to 139,665 vehicles. The situation was also bad in Europe and China, where sales fell by 9.8% and 8.5% respectively.

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Among other companies in the group, Bentley’s sales fell 26.6% in the year to September. Lamborghini was the only bright spot, with sales up 8.6% and operating profit up 9.8%.

The group delivered 1.25 million vehicles in the past nine months, down from 1.4 million in the same period last year. Given this decline, it’s no surprise that revenue fell from €5.04 billion ($55.1 billion) to €4.63 billion ($50.6 billion). Their operating profit took an even bigger hit, falling from 460 million euros ($500 million) to 209 million euros ($2.28 billion).

Audi Group results from January to September 2024

In the third quarter alone, operating profit plunged 91% to 10.6 billion euros ($116 million). The company mainly blamed “restructuring costs resulting from the restructuring of Audi’s Brussels plant”.

Although the situation is not optimistic, Audi said that they are updating their product lineup and launching 15 new models in 2024. These include the A5 and Q5, which will have a “significant impact on sales in the coming year.”

More new models are on the way, with Audi confirming the Q5 Sportback will debut later this month. This will be followed by the redesigned A7 early next year. The luxury brand is also adjusting its strategy in China, which will see them rely on partnerships and produce China-specific cars.