Summary
- Audi is closing its factory in Belgium in early 2023 after failing to find a buyer
- Production of the Q8 E-Tron will end in February 2025
- Volkswagen unions are discussing other profitability solutions with company officials
- The reasons behind the Q8 E-Tron’s failure include falling EV demand and increased competition
- Volkswagen may close additional factories and cut jobs across Europe to address overproduction and weak demand after the pandemic
Article
Audi To Close Factory in Belgium After Failing to Find Buyer
Audi has announced that it will be closing its factory in Belgium early next year after failing to find a buyer for the facility. The factory’s only current product, the Q8 E-Tron, will be axed at the end of February 2025. This decision comes after months of rumors and uncertainties surrounding the future of the Brussels plant, which only builds the Q8 E-Tron.
Protests and Uncertainties Surrounding Audi’s Brussels Plant
The troubles at Audi’s Brussels plant had been known for months, with rumors circulating that the automaker was considering ending production of the electric SUV early. This uncertainty made the 3,000 workers at the facility uneasy, resulting in protests and demonstrations. Angry protesters reportedly broke into the facility and tried to disrupt talks between union representatives and factory officials about the future of the plant.
Failed Attempts to Find a Buyer for the Factory
Audi had attempted to find a buyer for the Brussels plant, with reports suggesting that China’s Nio was interested in taking it over. However, no deal was confirmed, and Audi has officially ended the search for a buyer. The closure of the plant is likely to coincide with the end of production of the Q8 E-Tron, which has not been as successful as Audi had hoped.
Impact on Volkswagen and Potential Job Cuts
The closure of the Brussels plant could have wider implications for Volkswagen, with reports suggesting that two more factories could follow suit. This could result in tens of thousands of job cuts across Europe and a 10% salary cut for remaining employees. Volkswagen’s General Works Council Chairwoman has stated that all German VW plants are affected by the situation.
Challenges Faced by Audi and Volkswagen
Volkswagen has expressed surprise at the weak post-pandemic demand and its overproduction capacity. Strikes are expected at all of Volkswagen’s European plants, depending on the negotiations with the workers’ unions. The unions have proposed concessions, such as forgoing bonuses in 2025 and 2026, to save costs. They have also threatened legal action if the planned plant closures proceed.
Future Uncertainties for Audi and Volkswagen
There is still a chance that Volkswagen and Audi may keep their factories open, depending on the outcome of negotiations with the unions. However, if the overproduction poses a threat to the automaker’s existence, plant closures may become necessary. Despite the challenges faced by Audi and Volkswagen, their finances are not in the red, indicating that there is still hope for a resolution to the current crisis.
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