Audi, a Volkswagen-owned brand, projected a significant revenue increase in 2023, it said on March 16,2023. Nevertheless, Audi anticipates a more cautious profitability margin as higher costs weigh on profits. The automaker plans to normalize its product mix and provide customers with lower-priced models now that chip shortages are less severe.
The company projects a profit margin of 9-11% for the group that includes Audi, Bentley, Lamborghini, and Ducati, down from 12.2% last year.
According to Audi CEO Markus Duesmann, the luxury brand will introduce 10 new electric models to the market by 2025 to catch up to competitors. Additionally, the automaker is developing its last generation of combustion engine models and will only market EVs starting in 2026, with no combustion engine vehicles being offered from 2033.
Like most other foreign companies, Audi must make a significant choice about where to produce the EVs it intends to sell in the United States. According to the federal Inflation Reduction Act, an EV must comply with certain North American content standards in order for buyers to claim tax credits.
Deusmann clarified that “it’s a question of platform and, and automobile and segment. We must decide whether we won’t necessarily localize all products, but we might do so for one or the other. Because we are in the middle of the decision-making process, I am unable to say more at this time.
Meanwhile, he points out that the firm has feasible production options in North America between the new facility Volkswagen is constructing to introduce the Scout brand as well as VW and Audi factories in Mexico.
