9:28 am, November 6, 2024
Volkswagen’s premium arm, Audi Group, has reported a 91% slump in earnings on the back of Chinese sales collapsing.
Third quarter earnings for the Audi Group came in at 106 million euros (£88.4m) in the third quarter, with waning luxury spending in China and a plant restructuring in Brussels cited as the main reasons for the decline.
Deliveries of Audi models in the first nine months of the year fell in markets including Europe, China and the USA, while the premium brand group – which also includes Lamborghini, Bentley and motorcycle manufacturer Ducati – has seen a decline in volumes for its additional brands as well.
Audi delivered 1,235,590 (-10.9 percent) cars during the period, with Bentley accounting for 7,380 (2023: 10,053), Lamborghini 8,411 (8.6% up) and Ducati delivering 43,773 (2023: 47,856) motorcycles.
Total deliveries for the group came to 1,251,381 – a 10.9% drop.
‘We saw very intense price competition in Europe and especially in China,’ Audi chief financial officer Jurgen Rittersberger said to news agency, Bloomberg.
The news comes after parent company Volkswagen posted a 42% drop in profits last week, also apportioning much of the fall to a decline in the Chinese market, as well as slower than expected EV sales.
The German brand is reported to be considering plant closures as a result.
It has tabled a 10% pay cut after the profit fall in the third quarter where overall revenues dropped by 64%, sending its share price tail-spinning to a 24-year low.
Last week, Audi said it’s working with a potential investor to restructure its Brussels factory, which may otherwise be forced to close as a result of high operational costs and a lack of demand for the Q8 e-tron, which is the only model made there.
