Audi has recorded a severe decline in profits for the third quarter of 2026, with earnings falling to €95 million. This figure represents an 87% drop compared to the same period last year, when the manufacturer achieved €718 million. Consequently, the company is adjusting its profit forecast for the entire year downward. Full-year revenue stands at €42 billion with a profit of €1.22 billion, both figures significantly lower than the previous year's results. However, Audi CFO Jürgen Rittersberger indicated that performance is expected to improve in the fourth quarter.
Several factors are driving this financial downturn. The company cited poor business conditions in China, particularly regarding internal combustion engine vehicles, as a primary cause. Additionally, Audi pointed to pressure from Chinese exports entering the European market. Broader economic uncertainties stemming from the Iran conflict and US tariffs were also identified as contributing elements to the profit decline.
To address the issue of US tariffs, Audi plans to establish its own manufacturing plant in the United States. However, the manner in which this project was announced has generated significant controversy. CEO Gernot Döllner revealed the construction plans alongside US President Donald Trump at a political rally. While the strategic value of a US facility is not disputed, the timing and context of the announcement drew sharp criticism for occurring during a political campaign just before the US midterm elections.
Internal company regulations reportedly prohibit such appearances within three months of an election. The situation has caused embarrassment within the group; Daniela Cavallo, head of the works council at parent company Volkswagen, stated that one should be "ashamed to sink into the ground" given the display. The backlash was so intense among VW employees on the company intranet that management was forced to delete comments and disable the commenting function entirely.
Sources: Golem.de.