Audi are financially all over the place at the moment and to some, it can be very confusing. Servicing Stop is therefore going to attempt to take you through the financial world of Audi and of course, Volkswagen, as Audis parent company, will have to be involved at some point too.
The major factor that has affected the finances of Audi most recently is of course the Volkswagen emissions scandal. The scandal came to the forefront of the motoring world in September 2015 and since, Volkswagen has lost billions. As a result of this saga, Audi have seen their net profit decrease by four percent. Four percent may seem like a very small amount but apparently, this has equated to around €4.2 billion. Moreover, Audi’s operating profit has also fallen by around six percent to an approximated €4.8 billion. These figures are a direct result of the emissions scandal.
The reason for why the decrease in net profits is a direct result from the emissions scandal. But, Audi actually did very well in the last financial quarter of 2015 and in the first quarter of 2016. Audi have seen a nine percent increase in revenue to €58.4 billion and, just Audi badged vehicles, have seen production and sales increase too. The German luxury performance company have seen a 3.6% rise to 1.8 million units sold. This is an extremely impressive figure considering the aftermath of the scandal.
The figures here are a helpful insight into the finances of Volkswagen, who as of yet, haven’t released their finances as they are dealing with the subsequent emissions scandal. But we expect it to be a fair amount considering how much Audi has to spend on fixing the problems to their vehicles. There are a lot less Audi vehicles affected and, the company utilises different engines to that of Volkswagen, which are reportedly easier and cheaper to fix. So far then, Audi have lost a substantial amount of money to the emissions scandal but, profit through sales are increasing, so it is expected that they will be able to turn profits again by the end of this year. We hope so anyway.