Audi slashed its 2026 revenue forecast to between 58 billion and 63 billion euros, five billion euros below its April guidance, after first-half net profit fell 16.6 percent to 1.12 billion euros. The luxury brand lowered its operating margin estimate to between 5 and 7 percent, citing slumping sales in China and the hit from U.S. tariffs.
The downgrade compounds pressure on parent Volkswagen, whose operating profit fell 9.5 percent to 3.5 billion euros in the second quarter on revenue of 82 billion euros and a 4.2 percent margin. Chief Executive Oliver Blume warned that as many as 100,000 jobs could be eliminated by 2030, double the figure previously discussed, and said the restructuring may require closing up to four German factories. Blume added that Europe must shed excess production capacity of 500,000 vehicles to restore profitability.