Audi to Focus on Liquidity Amid Coronavirus Pandemic, Closes European Factories
19 März 2020 - 11:17AM
Dow Jones News
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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