Sales plummet in the Chinese market! Audi CFO comes clean: must undergo comprehensive restructuring with Volkswagen Group

according to Reuters, Audi, the luxury brand under Volkswagen, announced weak second-quarter results. Dragged down by declining sales in the Chinese and U.S. markets, Chief Financial Officer Jürgen Rittersberger stated bluntly that Audi must undergo a comprehensive restructuring in collaboration with the Volkswagen Group.

Rittersberger said: “Global challenges are increasing the pressure to take action. To remain competitive on the global stage, we must work together with the Volkswagen Group to adjust our business model and implement large-scale structural improvements.”

Financial data also confirms the urgency. Audi Group (including Lamborghini, Bentley, and Ducati) saw its second-quarter revenue decline 12.5% year-on-year to €15 billion (approximately $17.1 billion), with operating profit falling to €533 million and a profit margin of only 3.6%, far below Audi's target range of 5% to 7% set for this year.

The company has lowered its full-year performance forecast, citing difficulties in the Chinese market and the impact of conflicts in the Middle East.

From a market perspective, the Chinese market is the biggest drag. In the first half of this year, Audi's sales in China fell by nearly one-fifth year-on-year, continuing the downward trend since last year. For the full year 2025, Audi brand's total sales in the Chinese market were approximately 617,000 units, a year-on-year decline of about 5.6%.

To address the sales decline, capacity adjustments at Audi's factories are already underway. The Neckarsulm plant in southwest Germany has reduced its annual production capacity to 225,000 units, a decrease of about 75,000 units from previous years. The company has also agreed to cut night shifts at the plant.

This factory, which specializes in producing fuel-powered vehicles, is one of four German factories under the Volkswagen Group that may be closed after 2030. According to earlier reports, Volkswagen management plans to shut down the Neckarsulm plant by the end of 2034, with the Hannover, Emden, and Zwickau factories also on the closure list, involving approximately 40,000 employees in total.