Audi cuts profit outlook again on China, US tariffs

Audi cut its annual profit margin forecast on Friday for the second time this year, citing tougher competition in China and US tariffs.

The German premium carmaker now expects a profit margin of 3% to 5% for the year, down from its previous forecast of 5% to 7%. It had forecast 6% to 8% at the start of the year.

Audi said profit in the nine months to the end of September fell 41% to €1.22 billion ($1.37 billion).

Chief financial officer Juergen Rittersberger told journalists that market and competitive conditions had become more difficult in the third quarter. He said Audi needed to intensify measures and set clear priorities.

Audi's difficulties add pressure on parent company Volkswagen, which plans to cut 120,000 jobs globally across its brands by 2030. Audi has already announced plans to cut 7,500 jobs, and the long-term future of its Neckarsulm plant in southern Germany remains uncertain.

The carmaker recently announced plans for a new factory to build SUVs in Georgia, as the US market grows in importance for German carmakers facing pressure in China and US tariffs. Rittersberger called the US move “a decisive financial step”.