Trouble In Paradise? Volkswagen's Cash Cow Audi Warns Of Revenue Shortfall

Audi cut its revenue forecast for the year, blaming volatile currency markets, The automaker forecast that its revenue will stagnate compared with 2015 due to "challenging" conditions.

The pessimistic outlook from Volkswagen Group's flagship luxury division came a day after it scaled back its profitability forecast.

Audi said that 2016 revenue may now be on a par with last year's 58.4 billion euros ($63.76 billion), whereas it had previously forecast a moderate increase.

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PUGPROUD - 10/28/2016 1:30:07 PM

+1 Boost

Sounds like Audi is in denial...VW directives to take major cut backs in promotion, marketing, and incentives likely the cause. Just saying...

rockreid - 10/28/2016 5:20:57 PM

+3 Boost

Brexit probably hitting Audi pretty hard. The British market is big for Audi, and purchasing power in GB is cratering as the B Pound gets pummeled in trading markets.

MDarringer - 10/29/2016 9:32:27 AM

-1 Boost

for the short term

MDarringer - 10/29/2016 9:37:27 AM

0 Boost

Audi is going to stumble for several reasons. The sheer amount of cash that VW has been putting on the hood to make sales seem rosy will go away and like Ford they are at the tipping point where pouring more money into incentives just won't work. Money floated to dealers to buy courtesy cars to prop up sales will also evaporate. Down the road, with Audi getting its stand-alone platforms yanked away for a strong reliance on MQB for everything from the A6 down will reinforce that Audi is a German Mercury and that will be counterproductive.