Audi cuts 2025 outlook again as tariffs, EV shift dent margins

By Amir Orusov

(Reuters) -Volkswagen's premium brand Audi cut its 2025 profitability guidance on Friday for a second time, as it grapples with U.S. import tariffs and a costly transition to electric vehicles weighing on its margins.

Audi now expects an operating margin of between 4% and 6%, compared with its earlier range of 5% to 7%. The German group maintained its revenue outlook for the year.

U.S. tariffs cost Audi 850 million euros ($991 million) in the first nine months of 2025, with the full-year figure projected to reach 1.3 billion euros.

Like Volkswagen's Porsche AG unit, Audi has no U.S. plants, but its CFO Juergen Rittersberger confirmed plans to decide later this year on whether to open one.

Volkswagen swung to a loss in the third quarter, hit by billions of euros in additional tariff payments and a costly strategy u-turn at Porsche. Shares in Volkswagen were largely flat on Friday, after falling by 1.9% on Thursday.

Audi said its full-year guidance assumes a stable supply of semiconductors and related components, as a looming supply crunch due to a stand-off over Dutch chipmaker Nexperia threatens European auto production.

"We are closely monitoring the situation, but at the moment everything is going according to plan," Rittersberger said.

Volkswagen's Audi brand group, which also includes Bentley, Lamborghini and Ducati, had an operating margin of 3.2% in the first nine months, compared with 4.5% last year, hit by tariffs, restructuring and carbon emissions regulations.

Audi said it plans to significantly reduce complexity and optimise costs.

"We are addressing the challenging overall economic situation and intensified competition with consistent cost control," Rittersberger added.

($1 = 0.8575 euros)

(Reporting by Amir Orusov and Christina Amann; Editing by Rachel More, Joe Bavier and Alexander Smith)