Audi profit collapses as VW pauses electric Golf development
Audi's third-quarter operating profit fell 94% to €29 million amid sales declines in China and the US. Volkswagen has paused development of the electric Golf, citing financial constraints despite holding €33 billion in net liquidity.
Audi reported that its operating profit in the third quarter collapsed 94% to €29 million, leaving an operating margin barely above zero. Vehicle sales fell 11.4% in the first nine months, with declines of 25% in China and 17.3% in the US. The crisis is attributed to intense competition in China, US tariffs, and weakness in Europe. Volkswagen has paused development work on the electric Golf, with brand chief Thomas Schäfer stating that the company cannot afford the work right now, despite the automotive division holding €33 billion in net liquidity. In contrast, Porsche saw revenue decline only 6% in the first nine months, suggesting rising average selling prices, and its stock rose 8% in October. The German auto trio of Volkswagen, BMW, and Mercedes is down a third over three years, while Stellantis is down 75%. Analysts have criticized Audi's late entry into US manufacturing, with a planned plant in Georgia, as a management failure compared to BMW's 1992 Spartanburg plant.