"Trial Balance" is a weekly preview of news, data, and events prepared by CFO.com to help you stay ahead of market trends.

Part 1: Audi CFO Faces Growth Stagnation

Audi's Chief Financial Officer Jürgen Rittersberger said on Monday that the luxury carmaker must push forward with comprehensive reforms together with its parent company Volkswagen Group. Earlier released second-quarter results showed Audi's revenue fell 12.5% year-on-year to 15 billion euros, with operating margin slipping to 3.6%, well below the company's target range of 5% to 7%. Weak sales in the Chinese and U.S. markets dragged down overall performance, prompting Audi to also lower its full-year outlook.

"To remain competitive on the global stage, we must work with Volkswagen Group to realign our business model and implement large-scale structural improvements," Rittersberger said.

The remarks come as Volkswagen Group advances one of the largest transformations in its history. Volkswagen is cutting capacity and reassessing some of its manufacturing sites in Germany. Meanwhile, the company is investing billions of euros in electric vehicles and software development. Related announcements indicate that Volkswagen management has proposed a "comprehensive package of measures" to achieve restructuring, aiming to improve efficiency and strengthen long-term business resilience.

Rittersberger said Audi's strict cost controls have initially improved profitability, but he also acknowledged that these measures are "still insufficient" given geopolitical uncertainties and intense competition in the Chinese market. Audi posted an operating profit of 1.1 billion euros in the first half, slightly higher than the same period last year; thanks to improved working capital, net cash flow more than doubled year-on-year to 1.9 billion euros.

Rittersberger became Audi's CFO in 2021, having previously held several financial leadership roles within Volkswagen Group. In recent years, he has played a key role in Audi's decision-making and investor relations, including involvement in the software joint venture between Volkswagen and Rivian, which launched in 2024.

Last week, the joint venture made headlines again: federal prosecutors charged two Volkswagen engineers with securities fraud, alleging they learned confidential details before the partnership was publicly announced and traded Rivian securities based on that information. Prosecutors said the two illegally profited by more than $300,000. Volkswagen responded that the charges target individuals, not the company itself.

The partnership, initially announced at $5 billion, has since increased to $5.8 billion. Volkswagen is now also Rivian's largest shareholder. The two companies are jointly developing next-generation automotive software, which Volkswagen plans to deploy across its entire future vehicle lineup.

Audi's struggles stand in stark contrast to the strong performance of Lamborghini within the group. Earlier this year, Lamborghini CFO Paolo Poma told CFO.com that the Italian supercar maker contributes about 8% of Audi Group's profit, despite accounting for less than 1% of revenue. Poma noted that Lamborghini continues to benefit from strict production discipline and strong pricing power, even as the overall market environment becomes increasingly challenging.

Part 2: Key Events This Week

Here is a list of market events worth watching in the coming week.

Monday, July 27

Tuesday, July 28

Wednesday, July 29

Thursday, July 30

Friday, July 31

Part 3: Quote of the Week

"Ten years ago, CFOs were hired for control and reporting. The next generation of CFOs is hired for capital allocation capabilities under uncertainty and as the clearest thinkers in the company. If I had to sum it up in one sentence, it's what I wish I had learned earlier: being right is less important than being useful."

Bruno Annic

CFO of Wellhub

Bruno Annic, CFO of Wellhub (a wellness platform), shared with CFO.com in an interview how artificial intelligence is reshaping the finance function and his views on the future direction of the CFO role.