VW’s Audi Cuts Outlook on Intense Competition, Economic Woes

Volkswagen AG’s Audi Group walked back its financial targets for the year because of “intense” competition and economic challenges including tariffs in the US.

The sub-division, comprising the Audi, Lamborghini, Bentley and Ducati brands, now expects an operating margin of 4% to 6% for the year, compared with a previous forecast of as much as 7%. Sister brand Porsche AG scaling back its EV ambitions added to the strains, Audi said Friday.

“The situation remains very demanding,” Chief Financial Officer Jürgen Rittersberger said on a call with reporters, noting that the brand is expecting a €1.3 billion ($1.5 billion) ...