German luxury carmaker Audi reported a significant 33% drop in post-tax profits for 2024, down to €4.2 billion, following the permanent closure of its Brussels plant last month.
This marks the second consecutive year of substantial decline for the Volkswagen subsidiary. Revenue also decreased by 8% to €64.5 billion.
Audi executives cited challenging market conditions as the reason for job cuts. "We were also forced to make the regrettable decision to close our Brussels plant," said CFO Jürgen Rittersberger during a press conference.
On Monday, the car manufacturer announced plans to cut 7,500 jobs in Germany by the end of 2029.
"A year ago, we predicted 2024 would be a transitional year. Unfortunately, that has completely materialised," stated CEO Gernot Döllner. He added that challenges remain as Audi faces weak demand and fierce competition in China.
For 2025, Audi expects an increase in sales, revenue, and profits. However, "It won’t be easy," warned Jürgen Rittersberger. "Markets will remain highly competitive, and consumers will stay cautious, especially in China."
New models are expected to support Audi’s goals. "More than 20 new models will be launched in 2025 and 2026," said Gernot Döllner.
Tariffs in the United States pose another risk, though it may be limited in the short term, according to company leaders. Audi could be compelled to raise prices in the US.
