Audi to restructure with Volkswagen as sales decline in China, US

Audi will work more closely with parent company Volkswagen on a broad restructuring of its business as mounting global challenges weigh on performance, the luxury carmaker's finance chief said on Monday (July 27).

According to British media, the comments came after Audi reported lower first-half sales, citing weaker demand in China and the United States.

"Global challenges are increasing the pressure to act," Audi Chief Financial Officer Juergen Rittersberger said. He added that Audi must work with the Volkswagen Group to realign its business model and implement large-scale structural improvements to remain competitive.

Rittersberger said the company had already made progress in reducing production capacity. Audi's Neckarsulm plant in south-west Germany, one of four Volkswagen factories reportedly at risk of closure after 2030, is now operating at an annual capacity of 225,000 vehicles, around 75,000 fewer than in previous years.

Audi Group, which includes Lamborghini, Bentley and Ducati, reported first-half revenue of €29.2 billion, down 10% from a year earlier.

Despite the decline in revenue, operating profit rose 3% to €1.1 billion, giving the group an operating margin of 3.8%. Audi said the improvement was supported by strict cost discipline.