Audi cut its full-year guidance as a worsening market in China and escalating tensions in the Middle East weigh on the German automaker's performance.
"Challenging geopolitical and economic conditions are putting the entire automotive industry, including Audi, under increased pressure to act," said Chief Financial Officer Juergen Rittersberger. "To remain competitive on the global stage, we must work together with the Volkswagen Group to realign our business model and implement large-scale structural improvements," he added.
The company, which is part of Volkswagen Group, has been working to cut costs and become more efficient.
Last year it closed its Brussels plant and outlined plans to cut up to 7,500 jobs over the next few years while also taking measures to increase productivity, speed and flexibility at its German sites. It hopes to save more than 1 billion euros ($1.14 billion) a year in the medium term to counter headwinds from U.S. tariffs and intense competition in China.
It has also recently undertaken a refresh of its model lineup to help spur growth, launched its China-exclusive AUDI brand, and will unveil new cars tailored to its core markets.
A new Audi Q9 flagship SUV will soon be released in North America and Europe and the entry-level electric Audi A2 e-tron will launch in the fall.
Audi group--which comprises the Audi, Bentley, Lamborghini and Ducati brands--said it now expects revenue this year to land between 58 billion and 63 billion euros, from earlier guidance of between 63 billion and 68 billion euros.
The operating margin is now seen at between 5% and 7%, from 6% to 8% previously.
Net cash flow is still projected at 3 billion to 4 billion euros.
For the first half of the year it said it registered operating profit of 1.12 billion euros, up from 1.09 billion euros in the same period a year prior, as revenue fell 10% to 29.18 billion euros.
It logged an operating margin of 3.8%, up from 3.3%, and net cash flow of 1.89 billion euros.
It delivered 727,245 Audi-branded vehicles in the first six months of the year, down 7.2% on year, mainly due to continuing competitive challenges in China and U.S. tariffs.
China deliveries fell 19%, while deliveries in North America, excluding Mexico, were 17% lower on year.
Elsewhere, demand was stable in Germany and other major European markets where deliveries were significantly higher than the previous year's figure across all drive types.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
July 27, 2026 04:53 ET (08:53 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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