Audi, the luxury arm of Volkswagen, has issued a stark warning about its future prospects, slashing its operating-margin guidance and revising down revenue expectations. The German automaker cited weak demand in China, the world's largest car market, and the ongoing impact of US tariffs as major headwinds hampering its efforts to turn the company around. As a result, Audi now expects its operating margin to be as low as 5%, a significant drop from its previous target. The move is a blow to Volkswagen's ambitious plans to boost profitability across its luxury brands, and raises questions about the company's ability to navigate the increasingly complex global automotive landscape.
Audi cuts its operating-margin guidance to as low as 5 percent and lowers revenue expectations as weak China demand and U.S. tariffs hamper the automaker's turnaround efforts.
