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Audi faces US tariffs and costly EV transition impacting

margins

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Company plans US plant decision

(Adds details on U.S. import tariffs in paragraph 3, CFO quotes

on U.S. plant, chip supply issues in paragraphs 4, 7)

By Amir Orusov

Oct 31 (Reuters) - Volkswagen's premium

brand Audi lowered its full-year profitability guidance on

Friday for the second time this year, as it grapples with U.S.

import tariffs and a costly transition to electric vehicles

weighing on its margins.

The German automaker now expects an operating margin of

between 4% and 6%, compared with the earlier range of 5% to 7%.

It maintained its revenue outlook for the year.

U.S. tariffs cost Audi 850 million euros ($991.27 million)

in the first nine months with the full-year figure projected to

reach 1.3 billion euros.

Like Volkswagen's Porsche AG unit, Audi has no

U.S. plants, but CFO Juergen Rittersberger confirmed plans to

decide later this year on whether to open one.

Volkswagen swung to a hefty loss in the third quarter, hit

by billions of euros in additional tariff payments this year and

a costly strategy reversal at Porsche.

Audi's full-year guidance assumes a stable supply of

semiconductors and related components, the company said, as a

looming supply crunch due to a stand-off over Dutch chipmaker

Nexperia threatens European auto production.

"We are closely monitoring the situation, but at the moment

everything is going according to plan," Rittersberger said.

In the first nine months, Audi achieved an operating margin

of 3.2%, compared with 4.5% last year, impacted by tariffs,

restructuring and carbon emissions regulations.

The carmaker said it plans to significantly reduce

complexity and optimise costs.

"We are addressing the challenging overall economic

situation and intensified competition with consistent cost

control," he said.

($1 = 0.8575 euros)