German car manufacturer Audi on Monday reported a fall in first-quarter profits, amid ongoing struggles for the automotive industry, reported dpa.
Profit after tax fell by 14.4% year-on-year to €630 million ($715 billion), the company based in the Bavarian city of Ingolstadt said, although turnover rose from €13.7 billion to €15.4 billion.
Audi, a Volkswagen subsidiary, owns luxury brands such as Bentley, Lamborghini and Ducati.
In a press release, the company blamed the poor performance on "the global economic downturn, intensified competition and political uncertainties."
Germany's crucial carmaking sector, which has been under pressure in recent years from rising costs and increasing competition, is facing huge uncertainty from the new tariff policies imposed by US President Donald Trump's administration.
The crucial Chinese market is also a source of concern, with Audi's profits in China dropping slightly to €170 million.
"The year will continue to be very challenging due to the global economic conditions," said chief executive Gernot Döllner. "But Audi has started to execute its strategy and is delivering on it."
The company has already announced plans cut up to 7,500 jobs in Germany by 2029.
Looking forward, Audi is aiming to increase its focus on electric vehicles.
"We are particularly encouraged by sales and order intake for our new electric models," said Döllner.
Source: www.dailyfinland.fi
