The Trial Balance is CFO.com’s weekly preview of stories, stats and events to help you prepare.
Part 1 — Audi CFO addresses stalled momentum
Audi CFO Juergen Rittersberger said on Monday that the luxury automaker must work with parent Volkswagen on a broad overhaul after second-quarter revenue fell 12.5% to €15 billion and operating margin slipped to 3.6%, well below the company's 5% to 7% target. Audi also lowered its full-year outlook after weaker sales in China and the U.S. weighed on results.
"To remain competitive on the global stage, we must work together with the Volkswagen Group to realign our business model and implement large-scale structural improvements," Rittersberger said.
The comments come as Volkswagen continues one of the biggest transformations in its history. The automaker is reducing production capacity while reviewing parts of its manufacturing footprint in Germany. At the same time, the company is investing billions in electric vehicles and software. The release notes that Volkswagen's management has presented “a comprehensive package of measures” for realignment aimed at improving efficiency and strengthening the business over the long term.
Rittersberger said Audi's strict cost discipline has started to improve profitability but acknowledged the measures "are not enough" given geopolitical uncertainty and intense competition in China. The automaker reported first-half operating profit of €1.1 billion, slightly above last year, while net cash flow more than doubled to €1.9 billion because of improved working capital.
Rittersberger became Audi CFO in 2021 after holding finance leadership roles across Volkswagen Group. He’s played a key role in both decision-making and investor relations at Audi in recent years, including a recent joint software venture with Rivian that Volkswagen began in 2024.
The venture returned to the headlines last week after federal prosecutors charged two Volkswagen engineers with securities fraud, alleging they traded Rivian securities after learning confidential details about the partnership before it was announced publicly. Prosecutors said the pair made more than $300,000 in illegal profits. Volkswagen said the charges involve specific individuals rather than the company.
Originally announced as a $5 billion investment, the partnership has since grown to $5.8 billion. Volkswagen is also now Rivian's largest shareholder. The companies are developing next-generation vehicle software that Volkswagen plans to deploy across its future lineup.
Audi's struggles stand in contrast to Lamborghini's position within the group. Earlier this year, Lamborghini CFO Paolo Poma told CFO.com the Italian automaker generates about 8% of the Audi Group's profit despite contributing less than 1% of its revenue. The brand, Poma said, has benefited from disciplined production and strong pricing power even as broader market conditions have become more challenging.
Part 2 — This week
Here’s a list of important market events slated for the week ahead.
Monday, July 27
- Durable-goods orders, June
Tuesday, July 28
- Advanced U.S. trade balance in goods, June
- Advanced retail inventories, June
- Advanced wholesale inventories, June
- S&P Case-Shiller home price index, May
- Consumer confidence, July
Wednesday, July 29
Thursday, July 30
- Initial jobless claims, week ending July 25
- GDP, Q2
- PCE index, June
- Core PCE index, June
Friday, July 31
- Employment cost index, Q2
- Chicago Business Barometer (PMI), July
- University of Michigan Consumer Sentiment, July final
Part 3 — Quote of the week
“A decade ago you hired a CFO for control and reporting. The next generation gets hired for capital allocation under uncertainty and for being the clearest thinker in the building. If I had to compress it to one line, it’s the thing I wish I’d understood earlier: being right matters less than being useful.”
Bruno Annicq
CFO, Wellhub
Bruno Annicq, CFO of wellness platform Wellhub, spoke with CFO.com to discuss how artificial intelligence is reshaping finance and where he believes the CFO role is headed.
