Audi must work with Volkswagen to realign business, CFO says

BERLIN, July 27 (Reuters) - Volkswagen's premium brand Audi must work with the group towards a comprehensive restructuring, the subsidiary's finance chief said on Monday, after reporting declining sales in the first half of the year due to weakness in China and the U.S.

"Global challenges are increasing the pressure to act," Audi CFO Juergen Rittersberger said.

"To remain competitive on the global stage, we must work together with the Volkswagen Group to realign our business model and implement large-scale structural improvements."

Audi's Neckarsulm plant in south-west Germany is one of four German plants belonging to Volkswagen threatened with possible closure after 2030, as the group battles high costs, rising competition from China and tariff headwinds.

Ritterberger said Audi was already making progress in reducing capacity, with Neckarsulm currently operating at an annual production capacity of 225,000, around 75,000 less than in previous years.

Revenue for Volkswagen's Audi group, which also includes sports-car maker Lamborghini, luxury brand Bentley and motorcyle maker Ducati, fell by 10% year on year to €29.2 billion ($33.3 billion) in the first six months of 2026.

Operating profit rose by 3% to €1.1 billion, making for a profit margin of 3.8%, with "strict cost discipline" playing a role here, Audi said in a statement.

($1 = 0.8767 euros)

(Reporting by Rachel More and Christina AmannEditing by Ludwig Burger and Linda Pasquini)