Corona Pandemic: AUDI AG Takes Stock After Difficult First Quarter

source: Audi AG

  • Volumes and key financials significantly impacted by regulatory and economic consequences of corona crisis
  • Lockdowns and closed dealerships worldwide: Audi delivered 352,993 cars to customers in a difficult first quarter
  • Revenue of €12.5 billion, operating return on sales of 0.1 percent
  • Net cash flow of approximately €1 billion, net liquidity of €18.8 billion
  • CFO Arno Antlitz: “Audi is in a robust financial position. In the corona crisis, we are managing our business in a liquidity-oriented manner and reducing our short-term expenditure without compromising Audi’s long-term future capability.”
  • Outlook: expectation of weak performance of global economy and car markets with a clearly adverse impact on deliveries of the Audi brand and on the revenue and operating profit of the Audi Group.

Against the backdrop of the ongoing corona pandemic, Audi is taking stock after a difficult first quarter of 2020. Due to lockdowns and closed dealerships worldwide, deliveries of Audi-brand cars fell by 21.1 percent in the first three months of this year. The Audi Group’s revenue amounted to €12,454 million and its operating return on sales was 0.1 percent. Despite the difficult economic conditions, a net cash flow of approximately €1 billion was achieved. In view of the financial impact of the corona pandemic, Audi had taken early countermeasures to safeguard its liquidity. Furthermore, the cash flow was boosted by the sale within the VW Group of AEV GmbH. In order to protect its employees and in response to demand and supply-chain-factors, production was temporarily suspended worldwide and short-time working was introduced at the plants in Germany. Production in China is already largely back to normal. The Audi plants in Europe have been gradually ramping up production according to a fixed plan since the end of April. The Audi Group expects the corona pandemic to have a significant impact on the global economy and car markets over the full year, and currently assumes that deliveries of the Audi core brand, revenue and operating profit will be well below the prior-year levels.

In the context of the corona pandemic, Audi was operating in a highly volatile regulatory and economic environment in the first quarter. The global shutdown had adverse effects along the entire automotive value chain, for example on sales, customer demand and supply-chains stability. “We closed down our production capacities in a controlled manner and in doing so have protected jobs at our sites in Germany thanks to short-time working. The health of our employees and their families has always been and still is our top priority,” said Arno Antlitz, Member of the Audi Board of Management for Finance, China and Legal Affairs. “At the same time, during this phase when the markets are at a standstill, we have succeeded in protecting our liquidity and keeping core processes stable at our company also in the crisis.”