Car industry: Audi reports industry-standard downturn of one third

Similar to its parent company Volkswagen, which published its figures for 2024 last week, Audi is no longer performing as well as before. The brand is therefore just as affected as the other major German car manufacturers, where an economic phase has now been followed by consolidation at a lower level. Despite a decline of around a third, the car manufacturer is still in the black. However, competitiveness is also to be increased at the expense of employees.

Still in the black despite everything

The reasons for the weaker business are generally the same: since 2022, high supply has been followed by a phase of falling demand. Price reductions were also unable to stabilize the figures in 2024. As a result, Audi's earnings fell by 33 percent to 4.2 billion euros after tax in 2024, as reported by the Group. The second significant decline in a row resulted in a decline in turnover of almost eight percent to EUR 64.5 billion for the core brand Audi. The operating return on sales was up at 4.6 percent.

In comparison with BMW and Mercedes-Benz, however, Audi fared less well. The direct competitors in the market for upmarket and expensive cars fared better and are therefore still in the high plus range. Mercedes made 28 percent less profit, but still has 10.4 billion euros, BMW made a minus of 37 percent, but still has 7.7 billion. At 33 percent, Audi sits pretty much in the middle of the losses, but is still well below BMW with 4.2 billion.

Greater effort with fewer employees

According to Audi, additional problems arose due to delivery difficulties for certain engines and the initial financial burden caused by the closure of the Brussels plant. In addition to the closure of the unprofitable plant, fewer employees are now to try to make up for the financial dent. Audi is planning to cut up to 7500 jobs by 2029, but without compulsory redundancies. Investments are also to be reduced. By 2024, the shareholding had already fallen from 8840 to just 5310 euros per employee, in line with the course of business.

On the other hand, the union succeeded in persuading Audi to promise job security until the end of 2033 and a bonus for IG Metall members. The latter measure is intended to help stabilize and increase the number of union members in the longer term.

The management's outlook is mixed. The hope is for more than 20 new models to be launched in 2024 and 2025. Audi would like to increase sales, turnover, and returns again in 2025, but competition remains intense. In China, Audi only expects sales to move sideways. Audi can do little to counter the USA's tariff policy in the short term. If the corresponding plans are implemented, Audi will have to increase prices in the USA.

(fpi)