Audi Calls for Realignment with Volkswagen Amid Revenue Decline
Audi's Chief Financial Officer, Juergen Rittersberger, has called for a realignment of the company in collaboration with its parent firm, Volkswagen. This comes after Audi reported second-quarter revenue fell 12.5% to €15 billion and operating margin dropped below target at 3.6%. The CFO emphasized that structural improvements are necessary due to weak sales in China and the U.S., as well as ongoing global competition. Volkswagen is currently undergoing a major transformation, including reducing production capacity and investing heavily in electric vehicles and software development. Rittersberger noted Audi's cost discipline has improved profitability but remains insufficient given current market conditions. The CFO also highlighted recent challenges involving Volkswagen engineers accused of securities fraud related to its joint venture with Rivian. The partnership between Volkswagen and Rivian, now valued at $5.8 billion, is central to developing next-generation vehicle software for Volkswagen's future lineup.