The Ingolstadt Volkswagen subsidiary Audi is reducing its profit forecast due to the high costs of restructuring its factory in Brussels. The company announced on Thursday that the return for the year as a whole will now be between 6 and 8 percent. Previously, Audi had predicted a range between 8 and 10 percent.
The restructuring of the plant in the Belgian capital alone would result in costs of up to 1.3 billion euros, said CFO Jürgen Rittersberger. Early depreciation due to the possible early end to production of the Q8 etron, expenses for consultants and costs for staff reductions played a role. Audi recently put the factory to the test because demand for the electric luxury SUV has collapsed.
In the second quarter, Audi generated sales of 17.2 billion euros, 0.4 percent less than a year ago. Operating profit fell by 5.4 percent to 1.5 billion euros, and the return was 8.8 percent. Rittersberger said Audi is now benefiting from a better supply of parts for six-cylinder and eight-cylinder engines. At the start of the year, the Ingolstadt-based company recorded a significant drop in profits due to delivery problems. From the second half of the year, Audi will be well supplied again, said Rittersberger, which will also benefit profitability. Six-cylinder and eight-cylinder engines are installed in large and powerful vehicles, which usually have a higher return than smaller cars.
Audi is currently in the process of changing models for numerous vehicles. This year and next year alone, 20 new vehicles are to be brought onto the market. The Ingolstadt-based company recently presented the new edition of the A5 combustion engine model, and the A6 e-tron electric sedan was announced for the end of July. Thanks in part to the new vehicles, sales are expected to rise again in the second half of the year after declining in the first six months.