Audi employees in Brussels face a grim future as the plant teeters on the brink of collapse due to poor sales of the electric SUV produced there. This is part of a broader crisis in electromobility, exacerbated by the removal of the environmental bonus for electric cars at the beginning of the year. Without this bonus, electric cars have become too expensive for many buyers, leading to sluggish sales. In June, new registrations of electric cars in Germany fell again compared to the same month last year.
The weak sales are having far-reaching consequences across the automotive industry. Mercedes plans to keep some combustion engine series running longer, and suppliers are feeling the pressure. Audi is also struggling, with the Ingolstadt-based carmaker considering closing its plant in Brussels. The Q8 e-tron family manufactured there has seen a 'severe decline in demand,' with a sharp drop in incoming orders. Launched in 2018 as the first purely electric series vehicle from Audi, the SUV was renamed Q8 e-tron after a facelift in 2022.
The Brussels plant is grappling with 'structural challenges' due to its city location, which makes layout changes difficult and results in high logistics costs. These factors contribute to high production costs compared to other locations, making the plant too expensive for the VW Group. Audi is considering ending Q8 e-tron production earlier than planned.
The sales problems are not limited to Brussels. In China, the Audi e-tron GT electric sports car is also struggling, prompting Audi to withdraw it from the market there. Porsche's Taycan electric car has seen a significant drop in sales, with demand halving in the first half of the year compared to the same period last year. Porsche is now planning to reduce Taycan production.
The potential end of Q8 e-tron production would have severe consequences for the Brussels plant, which exclusively produces the electric SUV. The plant was extensively converted to produce the electric SUV after the Audi A1 production was relocated to Martorell in Spain in 2017. A 'cessation of operations' in Brussels is conceivable if no alternative is found.
Volker Germann, CEO of Audi Brussels, emphasized that the announcement is not yet a final decision. However, the news has unsettled the workforce. Rita Beck, spokeswoman for the Audi Committee in the European VW Group Works Council, urged Audi management to take responsibility for the site and develop a viable and sustainable solution during the consultation process.
In a further blow, Audi has announced plans to halve the workforce at the Brussels plant. The restructuring will involve the dismissal of approximately 1,500 people in the first phase, with the potential for further reductions that could lead to the plant's closure. Market difficulties and the decision to move Q8 e-tron production to Mexico are driving the restructuring plan.
