Audi Adjusts Financial Outlook Amid U.S. Tariffs and Trade Agreement

In response to recent U.S. import tariffs and a new trade agreement, Audi has revised its 2025 financial projections. The company now anticipates revenues between €65 billion and €70 billion, down from the previous forecast of €67.5 billion to €72.5 billion. Operating margins are also adjusted to a range of 5% to 7%, compared to the earlier estimate of 7% to 9%. These changes reflect the impact of higher U.S. import tariffs and ongoing restructuring costs. Audi is currently assessing the implications of the U.S.-EU trade agreement, which established a 15% baseline tariff on imports from the EU, including automobiles. While this agreement provides clarity on the new tariff regime, the 15% rate still represents a structural shift from the previous 2.5% rate, posing long-term competitiveness challenges for German carmakers. Audi, which has no manufacturing facilities in the United States, is considering establishing production capacity there to mitigate the effects of tariffs. CEO Juergen Rittersberger emphasized the company's focus on electric vehicles, stating, "We will also have a very close look at electric cars because that's still an area of focus, also in the U.S." Despite a 3.4% decline in overall global vehicle deliveries in the first quarter, sales of electric models rose by 30.1%, highlighting robust consumer demand and ongoing investment in electrification. In North America, excluding Mexico, deliveries fell by 2.1% to 48,599 units, partly due to upcoming model upgrades. Deliveries in China dropped by 7% to 144,471 vehicles, reflecting intensifying competition in the world's largest auto market. The automotive industry continues to navigate challenges posed by trade policies and market dynamics, with companies like Audi adapting strategies to maintain competitiveness in a rapidly evolving global landscape.