Overview
Volkswagen AG’s premium brand division - the unit that houses Audi, Lamborghini, Bentley and Ducati motorcycles - is aiming for an operating return of 6% to 8% in the current year, the company said. That target marks an increase from the group’s 5.1% operating return recorded the previous year.
Performance details and company objectives
Within the premium group, Audi’s own operating return fell to 3.9% last year. Company executives attributed part of that decline to the impact of tariffs and costs tied to reversing certain electric vehicle plans. Speaking at a media briefing, Chief Financial Officer Jürgen Rittersberger said Audi intends to reach double-digit returns by 2030.
Costs and restructuring
The luxury brand group absorbed approximately 1.2 billion ($1.4 billion) in US tariffs last year and also recorded provisions associated with meeting CO2 regulatory requirements. As part of efforts to improve efficiency, the company is moving forward with plans to reduce headcount at its German operations by 7,500 roles by 2029.
Model launches and market focus
To bolster sales, Audi is preparing a slate of new vehicles aimed at specific regional demands. In Europe the company will introduce the compact electric A2 e-tron to address growing demand for electric vehicles. For the United States market Audi plans to bring a full-size Q9 sport utility vehicle, a segment the company said was underrepresented in its lineup and contributed to weaker US sales last year.
In China, Audi faces intensifying competition from local manufacturers. Deliveries there are declining as competitors such as BYD Co. and Xiaomi Corp. expand with advanced EV features and lower prices. The rate of decline in China moderated to a 5% fall last year. Ahead of the Beijing auto show next month, Audi will unveil a second model from a China-only sub-brand it developed in partnership with SAIC, the AUDI E7X SUV.
Parent company priorities
Volkswagen said it is working to strengthen results at its luxury marques, Audi and Porsche. Both brands historically contributed strong returns for the automaker but have seen profitability ease due to costly shifts in electric vehicle strategies, the impact of US tariffs and falling volumes in China.
Note: The article presents the company-reported targets, financial impacts and strategic actions without additional commentary or speculation.