Audi reports record revenue, operating profit in 2022 amid EV push

Yahoo Finance automotive correspondent Pras Subramanian joins the Live show to discuss Audi's 2022 revenue and operating profit.

Video transcript

- And the Audi group composed of the brands Audi, Bentley, Lamborghini, and Ducati revealing today that it posted a record profit in 2022. The company seeing more than a 16% increase in revenue and close to a 40% jump in operating profit. Joining us now for more on this is Yahoo Finance's Senior Reporter Pras Subramanian. So Pras, can the Audi group keep this up given their push into EV?

PRAS SUBRAMANIAN: That's the big question, right? So you mentioned record revenue there, record profit for Audi group, which is those big premium sub brands for Volkswagen that owns Audi group as their parent company. So yeah. So they also had a strong forecast for 2023 this year as well. But while it's going on they have to actually transition the company to an EV future.

And today its CEO Markus Duesmann said that they're in the midst of the biggest product initiative in their history. They're going have 20 new models by 2025. 10 will be all electric. And by 2026 every new model will be an EV.

So that's a big transformation. And also it's happening with the company trying to stay profitable in a very competitive luxury market, German luxury market. Because BMW and Volkswagen-- I'm sorry, BMW and Mercedes doing the same thing right now. So the question is, can they actually make these cars and make them profitable? The good thing for a company like Audi is it's part, like I said, the VW network, the VW portfolio company. So they can leverage existing platforms to do these things cost effectively and share platforms to share costs.