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Audi stops production in Germany

Publish Date: 2022.05.18

  Affected by supply chain disruptions, the Audi plant in Neckarsulm, Germany, will suspend production of volume models such as the A4, A5 and A8 from May 16 to 20. Audi said that the shutdown of the factory was caused by factors such as international turmoil, chip shortages and the epidemic.


  Inside the Audi 4S store (file photo by Jiang Zhiwen/photo)


  However, the production of Audi A6, A7 and other models has not been affected and will continue to be produced at the Neckarsulm plant. The Boellinger Hoefe plant in Heilbronn will also continue to produce sports cars such as the R8 and E-Tron GT.


  Audi has also extended the short-time work regime at the Neckarsulm and Ingolstadt plants until May 31 due to the supply chain crisis. An Audi spokesman said in an interview with the media that the supply situation "remains unstable and full of variables in the short term."


  This series of uncertainties cast a shadow over Audi's 2022. According to Audi's financial report, in the first quarter of this year, its global sales fell by 16.8% to 390,826 vehicles.


  Focusing on the Chinese market, Audi only sold 161,600 vehicles in China in the first quarter, a year-on-year decrease of more than 20%. On the one hand, SAIC Audi A7L is in the climbing period, and the current monthly sales are only three digits, which has limited support for Audi's overall sales; And A4L are affected.


  Despite the decline in sales, Audi's operating income and net profit rose in the opposite direction in the first quarter. The financial report shows that in the first quarter, Audi achieved revenue of 14.282 billion euros, a year-on-year increase of 1.52%; net profit of 3.468 billion euros, a year-on-year increase of 147.00%, a record high.


  It is worth noting that Audi and Bentley played a significant role in its quarterly report. Bentley Motors, which was incorporated for the first time, contributed 813 million euros in revenue and 170 million euros in operating profit in the first quarter; at the same time, the valuation effect of raw material hedges (especially nickel and aluminum) brought it a profit of 1.2 billion euros.


  For an uncertain 2022, Audi expects to deliver 1.8-1.9 million vehicles and generate revenue of 62 billion-65 billion euros, with an operating return on sales expected to decline by 9% to 11%. Judging from the current production and sales situation, Audi will undoubtedly face great pressure to accomplish this goal.

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