As part of Volkswagen AG, the Brand Group Progressive, which includes the Audi, Bentley, Lamborghini, & Ducati brands reported their FY 2024 results recently. The way the Brand Group Progressive is structured, Audi is king, and the other brands report into Audi’s management. Volkswagen breaks out a fair amount of financial information for the consolidated Brand Group but a much more modest amount for Bentley. Based on that minimal information, I have pulled together a brief analysis of Bentley FY 2024 performance, challenges they are facing, recent changes, and what the future might bring.
Starting with a very high level overview of Audi’s results as Audi represents 90% of the Brand Group Progressive’s revenue and 78% of its operating profit. Audi’s overall health is critical to Bentley as they share resources and platforms. An example of this is the fact that the Audi Q7, Q8, Bentley Bentayga and Lamborghini Urus all are built off a common platform.
Audi Group FY 2024 Key Results: The key numbers for Audi in FY 2024 were 1,671K cars delivered, (down 11.8 % vs 2023), Net Revenues of €58.1 billion (-8.4%). Net profit of €2.7 billion (-45.3%). Net Cash Flow (total group) was €3.1 billion, down 35.2% billion and they finished 2024 with €22.8 billion of Liquidity.
At the annual Audi Media Conference, CEO Gernot Döllner stated:
“Global economic changes and intensified international competition are posing major challenges to Audi and the industry as a whole. We are facing this reality with the courage to break new ground and with confidence in our traditional strengths.”
“We are strategically realigning Audi – with new models, a stronger setup in China, and more efficient structures within the company.”
Which was followed by the following comment from CFO Jürgen Rittersberger:
“To sum up, we have kept Audi on track amid a tense geopolitical and economic situation and closed out the year on financially sound footing.”
If you substituted “Porsche” for “Audi” in the statements above they would hold as true (see: Porsche's 2024 Results). Like Porsche, Audi is facing major strategic and structural challenges which will take years to sort out. It’s unlikely that 2025 will be much different from 2024.