Volkswagen’s Audi-led premium brands reported a sharp 91% YoY drop in operating earnings to 106 million euros ($152 million) in Q3, due to weak luxury spending in China, restructuring costs in Brussels, and sluggish demand for electric vehicles. Audi’s deliveries fell across key markets, including Europe, China, and the US, amid growing competition from local Chinese automakers and global rivals like Tesla and BYD. A 1.2 billion euro ($1.3 billion) charge for restructuring Audi’s Brussels plant added further pressure, as the company faces high operating costs and low demand for its sole electric model produced there. To counter the downturn, Volkswagen is exploring cost-cutting measures, including potential factory closures and workforce reductions.
Audi-led premium brands see 91% profit drop
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