Home Money Audi makes ‘painful’ decision to close EV factory in Brussels as demand for electric cars slows

Audi makes ‘painful’ decision to close EV factory in Brussels as demand for electric cars slows

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Audi's decision to close its Brussels plant due to the drop in demand for electric vehicles puts the future of its Q8 e-Tron models at risk

Audi has announced it will close its Brussels factory at the end of February, in the latest blow to electric vehicle manufacturing.

The German manufacturer, which is part of the Volkswagen Group, has made the “painful” decision after unsuccessful efforts to find a buyer for the vehicle manufacturing plant.

The factory will close on February 28, 2025 with the Brussels Times 3,000 jobs are now at risk.

Follow a series of cost reduction measures in the automotive sector by Volkswagen in Germany, which have seen pay cuts, thousands of employees facing layoffs and multiple factories on the verge of closing amid a slowdown in electric car sales.

The closure of Audi’s Brussels facility also calls into question the future of one of Audi’s flagship electric cars, the Q8 e-tron, which is currently produced at the plant.

The 350,000-square-foot facility has been manufacturing the Q8 e-tron and Q8 e-tron Sportback since 2022 and is the primary producer of the models.

Audi’s decision to close its Brussels plant due to the drop in demand for electric vehicles puts the future of its Q8 e-Tron models at risk

The Brussels plant produced just 53,555 Q8 e-tron and Q8 e-tron Sportback cars in 2023, less than half of the factory's total production capacity.

The Brussels plant produced just 53,555 Q8 e-tron and Q8 e-tron Sportback cars in 2023, less than half of the factory’s total production capacity.

In July, Audi revealed it was “considering an early end to production” of its largest electric car, while focusing attention on its smaller electric SUVs, such as the e-tron Q4 and Q6.

The Brussels plant produced only 53,555 Q8 e-tron and Q8 e-tron Sportback cars in 2023, compared to the maximum annual capacity of 120,000 vehicles.

An Audi spokesperson told Auto Express: “In the context of the planned end of production of the Q8 e-tron model family on February 28, 2025 and the current supplier strikes at the Brussels plant, we have introduced a halt temporary orders for the Q8.

The 32,000 square meter Brussels facility has been manufacturing the Q8 e-Tron and Q8 e-Tron Sportback since 2022 and is the main producer of the models.

The 32,000 square meter Brussels facility has been manufacturing the Q8 e-Tron and Q8 e-Tron Sportback since 2022 and is the main producer of the models.

Audi spokesman Peter D’hoore made the plant closure announcement last week after the company said no alternatives to the worst-case scenario had been found.

Gerd Walker, Audi AG board member and head of production, told Reuters: ‘The decision to close the Brussels factory is painful.

“Personally, it was the hardest decision I’ve ever had to make in my professional career.”

The difficult move comes after strikes at parent company Volkswagen’s factories after the manufacturer threatened to close three of its plants, but did not specify which ones were at risk or how many jobs would be lost as a result.

While Volkswagen is still mulling over the decision, which would be the first factory closure in its 87-year history, Audi has decided to pull the plug after its attempts to sell the factory in recent months have failed to find a buyer.

Chinese electric vehicle maker Nio was reportedly in talks to buy it, but CEO William Li denied those rumors.

Gerd Walker, Audi AG board member and head of production, told Reuters the decision to close the Brussels factory is

Gerd Walker, Audi AG board member and head of production, told Reuters the decision to close the Brussels factory is “painful.”

The exact reason for the closure has not been confirmed, but it is likely to be a combination of “long-standing structural challenges” at the site, as well as high delivery and shipping costs due to its location.

The proximity of the factory to the city center also makes restructuring too difficult.

Audi’s announcement comes against a backdrop of slow adoption of electric vehicles on the continent, which the German brand says has led to a “global decline in customer orders in the luxury electric class.”

Several thousand workers from Europe's largest car maker, Volkswagen AG, gather during protests over wage increases on the grounds of VW's largest plant in Wolfsburg, Germany, on December 2.

Several thousand workers from Europe’s largest car maker, Volkswagen AG, gather during protests over wage increases on the grounds of VW’s largest plant in Wolfsburg, Germany, on December 2.

It is the first time in its 87-year history that the company has threatened to close factories in Germany (pictured, demonstration in Zwickau)

It is the first time in its 87-year history that the company has threatened to close factories in Germany (pictured, demonstration in Zwickau)

Sales of VW cars have plummeted in Europe as demand stagnates and consumers return to gasoline.

Globally, sales in the first three months of the year fell three percent, while gasoline engine sales rose four percent.

Volkswagen’s decision to cut 30,000 jobs and introduce a 10 percent pay cut has sparked strikes at its plants in Wolfsburg, Hannover and Zwickau (VW’s plant exclusively for electric vehicles).

Falling demand for electric vehicles and rising costs are being felt across Europe.

Vauxhall owner Stellantis has blamed the UK government’s zero-emission vehicle (ZEV) mandate for its plans to close its Luton plant in April 2025.

Vauxhall staff are currently holding a two-day protest and demonstration from Tuesday, December 17 to Wednesday, December 18 over Stellantis’ plans to close its profitable electric van factory in Luton, after unions said The proposal “doesn’t make sense.”

Automotive workers’ union Unite general secretary Sharon Graham said: “The time has rightly come for (chief executive) Carlos Tavares, whose counterproductive strategy of cutting Stellantis down to the bone to artificially inflate profits clearly has failed.”

“Stellantis now has the opportunity to avoid the unnecessary destruction of its Luton operations.”

Separately, the head of Ford’s British subsidiary has warned that the British car industry is in crisis due to the overwhelming lack of demand for electric cars.

Nissan also warned ministers that the ZEV mandate will cost thousands of automotive jobs in Britain.

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