Audi narrowly avoids loss in third quarter as China slump deepens crisis

Audi narrowly avoided posting a loss in the third quarter, reporting a net profit of just 95 million euros after taxes. The figure represents an 87 percent decline from the same period last year, when profit reached 718 million euros.

For the first nine months of the year, Audi generated 1.22 billion euros in profit and 42 billion euros in revenue. Both figures mark sharp declines compared with the prior year.

“The figures clearly show that the need for action at Audi is high and cannot be delayed.”

The company cited the collapse of the Chinese market, particularly for combustion-engine vehicles, as a major burden. Intensifying competition and growing export pressure from Chinese manufacturers into Europe also weighed on results.

Audi added that ongoing uncertainty in the Middle East, rising energy costs, and US tariffs further strained business. Chief Financial Officer Jürgen Rittersberger said the figures show that the need for action at Audi is high and cannot be delayed.

The automaker lowered its full-year forecast because of the weak third quarter. However, the new outlook still implies that the fourth quarter will improve.

Audi belongs to Volkswagen and also includes the brands Lamborghini, Bentley, and Ducati. Chief Executive Gernot Döllner remains under criticism for an appearance with US President Donald Trump shortly before the midterm elections.

German automakers as a whole face the same crisis, but Audi is hit especially hard because it has no factory of its own in the United States. Rival Mercedes reported 1.52 billion euros in profit for the past third quarter, while BMW is scheduled to release its figures next week.