Audi Group H1 2020 results show pandemic effect ‘still very significant’

MANILA: It wasn’t a surprise that Ingolstadt-headquartered carmaker Audi revealed this year’s first-half performance to be subpar compared to the same period in 2019. “Deliveries, revenue and operating profit were below the previous year’s figures. As expected, the consequences of the (coronavirus) pandemic are presenting major challenges for the entire economy and for Audi as well,” the company said in a release.

Following a global shutdown of production plants and dealerships in the early part of 2020, Audi said there was a “significant recovery in customer demand,” along with the resumption of manufacturing. Since the end of June, all Audi plants have started up again.

In H1, the company delivered 707,225 automobiles to customers worldwide, 22% down compared to 906,180 during the same period last year. Still, the brand said it is still better off than the market as a whole which is at -28%. “As a result, the Audi Group’s revenue in the first half of 2020 totaled €20,476 million and its operating loss before special items was €643 million,” it reported.

“The effects of the… pandemic are also reflected in our key financial figures. We responded quickly to (it) and optimized our short-term expenditure without compromising our long-term product plans. We are starting the second half of the year with robust liquidity,” said Audi AG Member of the Board of Management for Finance and Legal Affairs Arno Antlitz.

As with many other brands, Audi has resorted to digital solutions such as virtual showroom to remain in contact with customers despite closed dealerships and to promote social distancing.

“In Europe (-29%) and in the USA (-22%), the deliveries of the Audi brand were still significantly negative in June. In China, a significant recovery in demand has been apparent since March. The Four Rings achieved record figures there in May and June. Cumulative sales in our most important single market are still slightly down on the prior-year period, by 3%. Key growth drivers in China in the first half of the year were the new Audi A6 L, Audi Q2 L and Audi Q5 L,” said Audi.

The silver lining thus far for the company is the “good revenue development of the all-electric Audi E-tron.” By the midyear, 16,898 Audi units had been delivered to customers, making the model the global market leader among all-electric vehicles from German premium brands.

“Despite initial positive signals from the markets, the year 2020 remains extremely challenging. We are steering through the corona crisis in a highly concentrated manner and with the necessary flexibility. Although we have thoroughly reviewed our short-term expenditure in recent weeks, we are keeping a close eye on our long-term projects and are implementing them consistently,” continued Arno Antlitz. “Our strategic decisions define the agenda for the coming years. At the heart of this is the electrification and digitalization of our model range.” One example is Artemis. This new unit will accelerate the development of additional electric models.

For 2020, Audi company expects that sales will continue to be significantly lower amid the pandemic, and predicts “deliveries of the Audi brand and revenue to be significantly lower than in 2019.”

Photos from Audi AG

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