Audi sticks to 2013 profit target despite 17% third-quarter drop

Article by Anita Panait, on November 5, 2013

Audi reiterated its full-year 2013 profit target even after it suffered a 17-percent drop in operating profit in the third quarter of the year to EUR1.10 billion. Audi reiterated its goal to achieve its sales target of 1.5 million cars and SUVs in 2013, two years earlier than planned.

The German luxury carmaker, a unit of the Volkswagen Group, attributed the drop to higher investment costs on sites and technology. Audi is currently inducing overseas expansion, adding capacity in China, Mexico and Brazil – as part of its bid to surpass BMW as the top-selling luxury brand by 2020.

The carmaker’s second site in China will commence production at the end of 2013. It is also investing almost EUR1 billion euros ($1.35 billion) for a new facility in Mexico that will build the next generation Q5 SUV from 2016.

Audi chief financial officer Axel Strotbek said in the quarterly earnings statement that the carmaker is making high upfront expenditures and investments “now and in upcoming years” to create an “even stronger global position.”

Profit from Audi accounts for around 40 percent of VW group operating earnings and is considered vital to the parent’s target to surpass General Motors and Toyota Motor Corp. as the biggest carmaker in the world by 2018. Audi posted a 9.4-percent operating margin in the third quarter of 2013, compared to 7.3 percent return on sales for Mercedes, which posted a 23-percent surge in earnings before interest and tax (EBIT) to EUR1.2 billion. [source: automotive news - sub. required]

Topics: audi, sales

If you liked the article, share on:

Comments

Recommended

New and improved 2018 Subaru Legacy comes packed with a number of upgraded features from the get go - from the exterior to the interior. And the company has finally...
by - June 23, 2017
In an interview involving Lamborghini CEO Stefano Domenicali and Automotive News, the topic about the Urus was thoroughly discussed. This super SUV is scheduled to make its debut later this...
by - June 23, 2017
Porsche definitely adores variety. You’ll see what we mean if you browse through the official company's website that shows a plethora of various 911 models. And now, the German marque...
by - June 23, 2017
2018 Ford Expedition is on its way to the market, and will be arriving at dealerships this fall. The all-new SUV will come with a new design, new EcoBoost engine,...
by - June 23, 2017
The 2018 Porsche 911 GT2 RS that made its debut not so long ago at the E3 video game expo in Los Angeles has already been sold out according to...
by - June 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries