Economy News – Update
The German automotive manufacturer Audi, part of the Volkswagen Group, reported a 33% decline in profits for the previous year, totaling €4.2 billion. This represents the second consecutive year of significant profit reduction for the company.
The reported figures encompass not only the Audi brand itself but also the luxury brands under its umbrella, including Bentley, Lamborghini, and Ducati.
In a strategic move to enhance cost efficiency, Audi announced plans to eliminate 7,500 jobs in Germany by 2029. This decision is part of a broader cost-reduction initiative aimed at achieving annual savings of over €1 billion in the medium term, which will also involve revising employee financial benefits.
Audi’s President, Jeranen Dolnar, commented on the challenging market conditions: “A year ago, we stated that 2024 would be a year of transformation. Unfortunately, this prediction has proven to be accurate.” He added that ongoing challenges persist, highlighting a disparity between weak demand and an increase in supply, particularly in the Chinese market.
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