Audi Expects First Annual Sales Drop Since 1995

There's no secret the economic recession smashed automakers all over the world and, even if they were often described as less-affected companies, German car manufacturers are also in trouble. The best example comes straight from Volkswagen's Audi brand which is expected to "celebrate" its centennial birthday with the first annual sales drop since 1995.

In the annual report published today, Audi explained that 2009 is going to be a difficult year from all points of view because the deepening economic crisis continues to keep new car demand at the lowest possible level.

"2009 will probably be the most difficult year in the history of the automotive industry," Audi said in its annual report according to Autonews.

However, the company still doesn't need government funding as 2008 brought fairly high sales on most major markets. "There remains no need for external sources of financing," Audi said.

Deliveries of Audi brand vehicles were increased by 4.1 percent to 1,003,469 units, with revenues for fiscal 2008 reaching an all-time high of 34,196 million euros, representing a growth of 1.7 percent. Operating profit was improved by 2.5 percent to 2,772 million euros, it said.

"These positive effects make it easier for us to respond appropriately to the crisis,” explained Rupert Stadler, Chairman of the Board of Management of Audi AG.

Paradoxically and contrary to other automakers, the Audi Group increased the number of its employees to an annual average of 57,533, with 46,089 of these employees at Audi AG.

“The market may be in crisis, but Audi is not. We are using short-time working to protect the jobs of our core workforce. And we stand by the ‘Audi’s Future’ agreement, which rules out any redundancies before 2011,” added Dr. Werner Widuckel, Member of the Board of Management for Human Resources at Audi AG.