Audi Targets Higher Profitability, Accelerates Cost Cuts

This optimism stems from an ongoing performance program designed to enhance efficiency and competitiveness through significant cost reductions. The company aims to save over 1 billion euros annually in the medium term, partly by cutting 7,500 jobs by 2029, with two-thirds of the initial 6,000 cuts by 2027 already implemented or agreed upon.

Despite these efforts, Audi faces persistent headwinds, including a 1.2 billion euro impact from U.S. tariffs in 2025 (expected to continue), intense competition in China, and restructuring costs. Revenue for 2026 is forecast between 63 billion and 68 billion euros, compared to 65.5 billion euros last year.

While 2025 operating profit declined to 3.37 billion euros from 3.9 billion euros in 2024, net profit after tax rose 11% to 4.62 billion euros. Audi's product offensive, including 20 new models in the past two years (half electric) and upcoming launches like the Q9 SUV and A2 e-tron, is crucial to its growth strategy, alongside market-specific initiatives for China and the U.S. However, the company noted that the China market started 2026 "well behind expectations."