Audi reports Q1 earnings decline amid supply chain bottlenecks
Audi posted €13.7 billion in revenue and €466 million in operating profit for the first quarter of 2024, citing challenging market conditions and production ramp-ups.
The Audi Group reported a challenging start to 2024, with vehicle deliveries falling 4.7 percent to 402,048 units. The company posted an operating profit of €466 million, reflecting an operating margin of 3.4 percent on revenue of €13.7 billion. Management attributed the performance to supply chain constraints, specifically affecting V6 and V8 engines, alongside the costs associated with new product ramp-ups.
CFO Jürgen Rittersberger characterized the year as a period of transition. To address current performance gaps, the company has launched a performance program focused on optimizing its global production network and reducing operational complexity. While overall volume dipped, the company noted a 3 percent increase in demand for fully electric vehicles.
CEO Gernot Döllner stated that the company is maintaining its product expansion strategy. Upcoming releases include the A6 e-tron and the new A5 and Q5 generations based on the Premium Platform Combustion (PPC). Audi aims to offset the short-term financial pressure of the industry's electrification transition through these upcoming model launches.