Agency Report –
Munich – German luxury automaker Audi on Tuesday posted a sharp 33% drop in after-tax profits for 2024, falling to €4.2 billion ($4.6 billion).
This is second significant decrease in a row for the Volkswagen subsidiary. It reflects declining business fortunes across the Audi group which includes brands such as Bentley, Lamborghini and Ducati.
Audi is responding to its current difficulties with thousands of job cuts, which the firm’s leadership announced on Monday.
Last year Audi – like many other car manufacturers – suffered from weak demand and price wars in China. In the first half of the year, the company, based in Ingolstadt near Munich, had problems with a lack of parts for larger engines. Its bottom line was also hit with provisions for its Brussels’ plant closure.
The slump in sales of the core brand Audi also had an impact on overall turnover, which fell by almost 8% to €64.5 billion.
