Audi lowered its full-year financial guidance on Monday—as the German automaker looks to get its sales back on track.
The details: Audi’s new forecast—which company officials attribute to higher U.S. tariffs and ongoing restructuring costs—is 2.5 billion euros ($2.9 billion) lower than earlier expectations.
New revenue projections are between 65 billion euros and 70 billion euros ($76 billion and $82 billion), down from 67.5 billion euros to 72.5 billion euros previously.
The automaker has also lowered its operating margin forecast to 5% to 7%, compared to an earlier range of 7% to 9%.
News of Audi’s forecast cuts came a day after President Trump and President of the European Commission, Ursula Gertrud von der Leyen, announced that a trade agreement was reached between the two entities, which sets a 15% baseline U.S. tariff on imports from the EU.
Why it matters: Audi had likely been planning for U.S. import duties closer to 30%, so the lower tariff baseline should ease some degree of the concerns associated with higher tariffs. However, the automaker is still at a disadvantage to some of its chief competitors in the premium segment, given their stronger production footprint in the U.S.
Between the lines: With a trade agreement now in place, Audi can now zero in on the key aspect of its operations in dire need of improvement—new vehicle sales.
Audi’s U.S. sales dropped 14% in 2024, with 196,576 vehicles delivered.
Sales for the automaker’s best-selling model, the Q5, dropped 23% last year.
Audi’s U.S. sales were down 19% in Q2, its sixth consecutive quarterly decline.
Audi is counting on several new and refreshed models rolling out to turn things around, including the Q3, Q5, A5, and A6—but the company certainly has a tough rough ahead to gain traction against competitors like BMW and Mercedes-Benz.
What they’re saying: “I don't want to beat around the bush, we need to get back on track now. I think we are passing through the lowest point,” said Gernot Döllner, CEO of Audi (via Motor 1).
Bottom line: Audi’s reduced financial guidance signals near-term headwinds from U.S. tariffs and operational challenges. The finalized trade deal offers a clearer path for the automaker to regain traction in the market. However, stakeholders should closely monitor the rollout and reception of Audi’s new models, as reviving U.S. sales will be critical to the company’s turnaround.
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