Audi in the crisis: 7,500 job cuts and sales pressure on the way to relaxation!

Audi in the crisis: 7,500 job cuts and sales pressure on the way to relaxation!

Audi faces a challenging economic situation, which is characterized by a significant decline in profit, sales and sales figures. According to Südwest24 The operational profit of the company in 2024 dropped by about a third to 4.2 billion euros. This development represents the second decline in a row and is primarily attributed to the falling demand in China and to challenges in the field of electric cars.

In 2024, Audi sold only 1.69 million vehicles, which corresponds to a decline of almost 12 percent compared to the previous year. Sales fell 7.6 percent to 64.5 billion euros. These difficulties open up a hard way to relax for Audi, which was described by Audi boss Gernot Döllner as the year of transition href = "https://www.rnd.de/wirtschaft/Audi-im-abwaertstrend-gewinnschruch-stellen-und-ein-harter-weg-zur-erholung-3tdsdgvpuriaxpouurnvgtu3za.html"> Rnd reported.

job cuts and production relocation

In order to react to the current financial challenges, Audi plans to reduce up to 7,500 jobs in the indirect area by 2029. This happens without any operating dismissals, but it represents a significant cut for the workforce. As early as 2024, the work in Brussels was closed with 3,000 jobs. In addition, the participation of results of the employees is temporarily restructured and shortened in order to achieve savings of at least one billion euros annually.

The foresight for 2025 is positive; Audi is aiming for an increase in sales to 67.5 to 72.5 billion euros and would like to increase the operational return to 7 to 9 percent again. However, this is complicated by the weak demand and an increased supply, especially in China. A sideways movement in the meantime in this important market cannot be excluded.

Audi also plans to develop new market strategies, including reviewing the possibility of producing your own models in the USA. The company wants to counter higher customs fees due to impending tariffs to vehicles manufactured in Mexico. In the short term, price increases could be passed on to customers to cushion the increase in customs costs.

overall economic context

The challenges that Audi faces are not isolated. Other manufacturers such as BMW and Mercedes-Benz also reported similar declines. The pressure in the automotive industry is noticeable, since the demand for vehicles and the general economic situation continues to be subject to fluctuations and the automotive manufacturers force their strategies quickly.

For the coming years, Audi is planning to introduce over 20 new models that are scheduled to come onto the market in 2025 and 2026. Despite the challenges, it is crucial for Audi to regain new impulses in order to regain the market share and stabilize the financial foundations, so ecomento .