In the first six months, Audi saw a drastic drop in sales of more than a fifth fewer cars sold. But gradually the situation seems to be stabilizing again and the VW subsidiary is calling for an ambitious goal: it wants to more than make up for the loss by the end of the year.
The long closure of car factories and car dealers and the slump in customer demand have made Audi slip deep into the red. The VW subsidiary sold 22 percent fewer cars worldwide in the first half of the year, sales fell 29 percent to only 20.5 billion euros and the operating loss was 750 million euros.
Production has resumed at all locations worldwide for a week, said Audi CEO Markus Duesmann in Ingolstadt. But "despite the first positive signals from the markets, 2020 remains extremely challenging," stressed CFO Arno Antlitz. For the year as a whole, the Executive Board expects lower demand worldwide, significantly less sales and an operating result "significantly below the previous year", but "clearly positive". Last year, Audi contributed 4.5 billion euros to the VW Group's operating profit.
Duesmann said that the reduction of 9500 jobs in Ingolstadt and Neckarsulm had already been decided in November and thus before the outbreak of the corona pandemic. "I am convinced that this is sufficient for us. Nothing else is planned." Antlitz said: "We are bravely investing in our product range and e-mobility. We can afford it," because the group of companies is opening up synergies.
In China, Audi demand slumped three percent
The Artemis project just launched should develop a completely new electrical system for many vehicles in the VW Group and "get electric cars off to a quick start," said Duesmann, who also heads the research and development of the entire Group as VW Board member. The joint electrical platform PPE from Audi and Porsche is already well advanced. Artemis run in parallel and go much further. In the future, the series would no longer be sorted "according to the sheet metal cladding" and the length of the vehicles, but according to the status of the on-board network. "This is a medium-sized revolution." The first Artemis model is said to be an Audi and will be launched in four years.
Audi naturally wants to comply with the EU's CO2 requirements, said Duesmann. When asked about the announced reduction in CO2 emissions at BMW over the next ten years, he said: "We have a goal similar to BMW." In 2025, Audi plans to offer 20 battery-electric cars. At the request of VW, the Audi Annual General Meeting is to resolve the squeeze-out, i.e. the exclusion of the last remaining small shareholders. These hold just 0.4 percent of the shares. A court-appointed auditor put Audi AG's company value at 66.7 billion euros.
Audi sold 707,000 vehicles in the first half of the year, a decline similar to that of its larger rivals Mercedes-Benz and BMW. In China, Audi demand slumped by three percent, in Europe by 37 percent. Antlitz said: "The current situation appears to be stabilizing."
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