Audi is exploring options for its Brussels plant following the decision to relocate production of the Q8 e-tron to Mexico. One potential plan involves producing a large electric SUV above the Q8 e-tron in Brussels, a role originally earmarked for the Audi plant in Neckarsulm, Germany. However, Neckarsulm’s increased demand for combustion engines may make it more viable to produce updated A5 and A7 combustion models there instead.
The Brussels plant is also being considered for the production of batteries and components for German plants. Audi is expected to clarify the future allocation at the Brussels plant by November during the VW Group’s traditional planning round for the next five years. Talks between the Belgian government and Audi are planned for mid-June, with the Belgian government expected to propose measures, including financial support, to maintain the plant.
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Currently, the Brussels plant is not profitable for Audi, with a capacity of 120,000 units, the smallest in Europe. Production in Brussels has been low, with only 37,400 vehicles produced in 2030. Sales of the Q8 e-tron, the plant’s recent model, never exceeded 47,900 vehicles in 2022.
Audi aims to avoid closing a plant in Europe but faces challenges in Brussels. It’s uncertain if a more exclusive SUV exceeding five meters in length would generate sufficient demand to better utilize the plant’s capacity. Such a model would likely be purely electric based on the SSP platform. However, even with global exports, it’s unclear if the SSP platform alone would be enough to maximize the Brussels plant’s capacity.
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Other Audi plants also face capacity underutilization; in Hungary, only 114,000 Audis were built in 2023, well below the 200,000-unit capacity. Audi’s decision on the future of its Brussels plant is eagerly anticipated as the company navigates its production strategy amidst shifting market demands.
