Audi Cuts Guidance on China Woes and Escalating Geopolitical Tensions
By Dominic Chopping
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.
The company, which is part of Volkswagen Group, has been working to cut costs and become more efficient.
Last year it 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, and launched its China-exclusive AUDI brand.
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.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
July 27, 2026 04:12 ET (08:12 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
Popular
4 Growth Stocks to Buy While They’re Still Undervalued
3 of the Best Core Stocks to Own
3 Great New ETFs From 2026
The 10 Best Companies to Invest in Now
United States