Audi to Shut Down Brussels Plant Due to Weak Sales of Q8 e-tron Electric SUVs
Audi has decided to close its Brussels plant in Belgium by the end of February 2025. This decision has been taken due to weak sales of Q8 e-tron and Q8 e-tron Sportback electric SUVs. Both these models will also be removed from the company’s product line.
Audi sold only 49,001 units of the Q8 e-tron in 2023, which is 4.3% less than in 2022. While the Brussels plant has an annual production capacity of 1,20,000 vehicles. This huge difference between sales and production made it impossible to keep the plant running.
Plant Sale Attempt and NIO’s Denial
Audi tried to sell this plant, but was not successful in it. In September 2023, there were reports that Chinese electric vehicle manufacturer NIO was showing interest in buying this plant. However, NIO CEO Li Bin denied the news, saying, “No, we did not contact Audi. If Audi cannot afford this plant, then NIO cannot either.”
Production and History
The Brussels plant was established in 1949 and is the world’s first carbon-neutral mass production plant in the luxury segment. About 3,000 people work in this plant.
Audi started production of its first electric car model ‘e-tron’ at this plant in 2018. It underwent a mid-term update in late 2022 and was renamed the Q8 e-tron. Production of the Q8 e-tron and Q8 e-tron Sportback started from December 2022. Now this production will end on 28 February 2025.
Statement by Audi’s Production Chief
Audi’s production chief Gerd Walker described the decision as “very painful” and said it was the most difficult decision of his career.
The low sales of the Q8 e-tron necessitated the decision. Increasing competition in the market for electric SUVs and weak sales figures made the plant financially unviable, forcing it to close.
The decision not only reflects changes in the automobile industry but will also impact Audi’s future strategy for electric vehicles.
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