Audi will maintain its full-year financial outlook for 2025 despite profit drops and the uncertainty caused by the United States’s automotive tariffs. The automaker projects revenue of $76.28 billion to $81.93 billion and an operating margin of 7% to 9%. However, the guidance excludes two critical impacts on the business: the potential consequences of the United States’ new automotive tariffs on imports and shifting costs tied to a recently negotiated labor deal.
Due to the market’s extreme volatility, the financial implications of the automotive tariffs can’t be adequately assessed. At the same time, the overall repercussions of the labor deal are currently being evaluated.
“The year will continue to be very challenging due to the global economic conditions,” Audi CEO Gernot Döllner warns.
The automaker’s first-quarter profit after tax dropped to $712 million, down from the $831.6 million. Total deliveries fell by 3.4% to 383,401 vehicles, with the most significant impact occurring in China, where deliveries fell 7% as domestic competition continued to devour market share. However, despite the decline in profit, Audi’s revenue rose 12% to $17.45 billion, and the company’s EV sales grew 30% year-over-year to 46,371, signaling positive momentum in electrification.
Despite the decline in results, the German automaker continues to move forward with efforts to strengthen its global footprint. Recently, Audi CEO Döllner confirmed that the company is considering establishing its first U.S.-based factory and is nearing a final decision. This potential move could serve as a strategic stopgap to navigate the impact of U.S. auto tariffs while expanding the brand’s manufacturing presence in the United States.
