Audi lowers performance expectations for 2025 due to tariffs and business restructuring dragging down profits.

Volkswagen Group's Audi brand has lowered its financial expectations for 2025, citing pressure on profits from the tariff policies of the Donald Trump administration and the costs of business restructuring. Audi Group currently expects an operating return on sales of 5% to 7% for the year, lower than the previous forecast of 7% to 9%. The group's profitability has already declined in the first half of the year due to the impact of tariffs. Its parent company Volkswagen Group also lowered its full-year performance guidance last week. In the first half of the year, Audi saw a decline in sales in most major markets, including North America and China, which was previously a major contributor to profits, therefore the company is working on updating its model lineup. In the competitive Chinese market, local companies such as BYD are fiercely competing, and the market share of European car manufacturers such as Audi and Porsche is continuously being eroded. In the U.S. market, following the agreement reached between Trump and the EU on Sunday, tariffs are currently at 15%, which has increased costs and operational complexity for businesses. Audi stated in a release, "We are currently assessing the impact of the recent tariff agreement between the U.S. and EU." Chief Financial Officer Arno Antlitz said during a conference call that the company is also waiting for clarification on the final tariff levels in Mexico, as the Q5 SUV, which is produced by Audi in Mexico, is a best-selling model in the U.S. market.