The start of the new fiscal year was anything but smooth for Audi, as reported by Der Spiegel. Shortages in engine supply, especially for the most profitable models, significantly impacted the quarterly balance sheet of the carmaker from Ingolstadt. Nevertheless, Chief Financial Officer Jürgen Rittersberger remains optimistic.
In the first quarter, Audi experienced a decrease in profit of around one billion euros and a drop in revenue of more than three billion euros compared to the same period last year, according to the published financial figures. The bottom line remained a positive of 736 million euros. The company’s focus now lies on making up ground in the second half of the year to achieve its goals for 2024.
Chief Financial Officer Jürgen Rittersberger commented, “As expected, 2024 will be a transitional year for us. This is particularly evident in the first quarter, which was marked by, among other things, a strained supply situation.”
Specifically, the V6 and V8 engines for the flagship models, which bring in high profits for Audi, were affected by the delivery problems. In addition to these challenges, costs for model initiatives, a difficult market environment with price pressure in Germany and Europe, a strike in Mexico, and a valuation adjustment for used cars were cited.
Rittersberger did not delve into the details of the delivery problems with the V6 and V8 engines but emphasized that they are complex components crucial for engine efficiency. It had been difficult to quickly find an alternative, but the situation was improving, especially in the third and fourth quarters.
The significant decrease in revenue by almost 19 percent to 13.7 billion euros compared to a slight decrease in deliveries by just under 5 percent is partially attributed to the fact that the delivery problems mainly affected more expensive vehicles. Rittersberger explained that a large portion of the cars sold went to China and, due to joint ventures there, were not included in the revenue calculation. China again accounted for more than a third of sales, with an increase compared to declining numbers in the USA and Europe.
