Saturday, July 13, 2024

Volkswagen Warns of Potential Closure of Audi’s Brussels Plant Amid Electric Car Demand Slump

- Advertisement -
- Advertisement -

Volkswagen cautioned on Tuesday that it may close Audi’s Brussels site due to a sharp drop in demand for high-end electric cars, impacting Europe’s top carmaker. The company revised its margin target downwards for the year.

“The employee representatives of Audi AG are calling for a future-proof perspective for the plant and our colleagues in Brussels. The Audi management must take responsibility for the site,” said Rita Beck, spokeswoman for the Audi Committee in the European VW Group Works Council.

The Brussels site, which produced about 50,000 cars last year, faces “long-standing structural challenges” such as logistical constraints and layout difficulties due to its urban location. Audi stated it could cease operations if no alternative is found after a consultation process with its approximately 3,000 employees.

Volkswagen expects costs of up to 2.6 billion euros ($2.8 billion) in 2024 to find a new use for the Brussels plant or close it, along with other unforeseen expenses. Porsche SE, which owns almost a third of Volkswagen AG’s shares and most of its voting rights, lowered its earnings forecast to 3.5 billion to 5.5 billion euros.

Demand for Audi’s Q8 e-tron, introduced in 2018, has sharply dropped, and production may end in 2025. Volkswagen’s first-quarter operating profit fell 20%, partly due to delays at Audi caused by component shortages when the Brussels plant closed for two weeks in February.

“The employee representatives of Audi AG are calling for a future-proof perspective for the plant and our colleagues in Brussels. The Audi management must take responsibility for the site,” said Rita Beck, spokeswoman for the Audi Committee in the European VW Group Works Council

- Advertisement -

Subscribe
Latest news
- Advertisement -
Related news
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here