Audi Quarterly Profits Hit Harder Than Expected By Diesel Scandal

Volkswagen Group's Audi unit gave an early indication of the costs of the diesel scandal to its parent company today, reporting that the issue had cut into its 2015 profit.

Audi said its operating profit fell 6.1 percent to 4.84 billion euros ($5.3 billion) on emissions-related costs of 228 million euros, combined with provisions for recalls of cars fitted with Takata Corp. airbags.

The operating margin at Volkswagen's luxury division fell to 8.3 percent from 9.6 percent, the company said in a statement. This compares with 10 percent at rival Mercedes-Benz which last year eclipsed Audi in global sales for the first time since 2010.

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TheSteve - 3/3/2016 12:45:56 PM

+5 Boost

This is a good reminder to AutoSpies readers that Unit Sales aren't the only metric of success. Audi has been bragging for years about how they've enjoyed increased unit sales every single month for about 5 years. The *cost* of getting those sales matters!

MDarringer - 3/4/2016 8:54:22 AM

0 Boost

Indeed, Audis are sold with STEEP discounts because VW was all about volume and not about quality, reliability, durability, or profit commensurate with competing companies.

TeibNet - 3/4/2016 5:55:59 PM

+1 Boost

Very true...

TheSteve - 3/6/2016 11:37:16 AM

0 Boost

MDarringer: I don't know about the rest of the world, but when I ordered my Audi Qu in Feb 2015 and took delivery in May 2015, they were no steep discounts to be had, from the dealer (~3%) or the factory ($750). Factory financing of 2.9% was merely competitive. This pales in comparison to what I see on huge banners as I drive my domestic brand dealers.

PUGPROUD - 3/3/2016 5:12:28 PM

0 Boost

Audi hasn't seen nothing yet...the tidal wave of potential liability for VW hasn't come close to cresting. VW has consistently underestimated costs of scandal which I believe will hit their bottom line for next five to seven years.

Dexter1 - 3/4/2016 6:28:44 AM

0 Boost

Is it the diesel scandal or is it that even Audi's newest offerings look almost identical to the old offerings that look almost identical to the even older offerings? I'm not saying that Audi has to follow the hideous "crouching tiger eats the gods of Mt. Fuji" design language of Lexus—but at least the Audi designers could put forth a little, teeny bit of effort. Look at the bland blob called the Q7 for Christ's sake—and this rant is coming from someone who has bought/leased 8 Audis in the past and am still driving one.

GermanNut - 3/4/2016 12:43:02 PM

+1 Boost

For all the doom and gloom people are predicting, Audi has still managed to increase sales every single month for the past 62 consecutive months in the U.S. market. Even if people want to discount that accomplishment, Audi still outsold BMW globally in the month of January.

Yes, profitability has taken a hit but Audi will make it up.