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Audi steps up production ahead of recent pollution regulations

Audi has stepped up production prior of a September deadline when it becomes tougher to register vehicles as roadworthy, the German premium automaker stated on Friday.

From next month, automobiles need to pass new pollution regulations known as the Worldwide Harmonized Light Duty Vehicles Test procedure, or WLTP. Vehicles that are registered for sale before this deadline can still be passed on to dealerships after September.

The Ingolstadt-based manufacturer stated it had ramped up production prior the deadline and therefore does not anticipate to see a drop in vehicle deliveries this year, even as it deals with issues adjusting its portfolio.

“The company expects significant fluctuations during the year in production, inventories and deliveries, as well as in its key financials,” Audi stated accompanying its recent financial results.

“In this context, the first half of the year showed a significant rise in production levels for anticipatory stockpiling.”

Several manufacturers consisting Audi parent Volkswagen and competitor Daimler have stated margins may suffer because of delays getting their fleet ready for the recent road certification standards.

Audi added it anticipates its research and development expenditure ratio to be somewhat above the long-term target corridor of 6.0 to 6.5 percent of sales.

Audi also assumes that the capital expenditure ratio is going to be somewhat over its target level of 5.0 to 5.5 percent.

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