By Jessica Sier 
 

Audi AG said Thursday that the coronavirus pandemic makes it impossible to reliably forecast the coming year and in the short term the company will focus on liquidity.

The Volkswagen brand will shut down production at sites in Europe and Mexico--Ingolstadt and Neckarsulm in Germany, Brussels in Belgium, Gyor in Hungary, and San Jose Chiapa in Mexico--by the end of this week.

"We will be doing everything in our power in the coming weeks to stabilize our core processes and thus to secure the liquidity of our company," chief financial officer Arno Antlitz said.

While coronavirus is the topline concern, Audi is bracing for further challenges in 2020, with tighter carbon-dioxide emmissions standards coming into effect and trade disputes still lingering over its markets.

The company said it will continue to push investment into electrification and digitalization of its fleet, but has cut its strategic range for R&D ratio to 5.0%-6.0% from 6.5%-7.0%.

Audi will maintain its medium-term goal of an operating margin between 9% and 11%, it said.

 

Write to Jessica Sier at jessica.sier@wsj.com

 

(END) Dow Jones Newswires

March 19, 2020 06:02 ET (10:02 GMT)

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