Audi cuts forecast over US tariffs and restructuring costs
The Ingolstadt-based company expects revenue of between €65bn (R1,355,406,000,000) and €70bn (R1,459,560,200,000), down from its previous forecast of €67.5bn (R1,407,537,000,000) to €72.5bn (R1,511,687,350,000). Audi also cut its operating margin forecast to 5% to 7%, compared to the earlier range of 7% to 9%.
Audi said it is assessing the implications of the trade deal reached between the US and the EU on Sunday.
The agreement set a 15% baseline US tariff on imports from the EU, including cars, which had previously faced customs duties of 27.5%.
"Should the 15% tariff stay in place long-term, it would put Audi at a competitive disadvantage because its key peers have a more pronounced US production footprint," said Fabio Hoelscher, an analyst from Warburg Research.
Audi is among the carmakers most exposed to US tariffs as it has no manufacturing facilities in the US.
Though the deal provides clarity on the new tariff regime, enabling better operational and strategic planning, the 15% rate represents a structural shift from the 2.5% rate before US President Donald Trump took office, said Pal Skirta, equity analyst from Metzler Equities.
That leaves German carmakers facing persistently higher US tariffs on their exports and long-term competitiveness challenges, he said.
The Volkswagen Group also cut its full-year guidance on Friday after taking a $1.5bn (R26,781,448,350) tariff hit in the first half of the year.
Global carmakers have booked billions of losses and some issued profit warnings due to US import tariffs. The European industry is also facing stiffening competition from China and domestic regulations aimed at speeding up the electric-vehicle transition.
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