Challenging financial situation and subpar sales: Audi informs Brussels electric vehicle manufacturing staff about the predicament
Audi revealed the challenges facing their electric car plant in Brussels during a staff meeting. This facility has high production costs and only manufactures a single outdated model, sales for which have taken a nosedive. The Volkswagen group has revised its yearly predictions due to the expense of either closing down or repurposing this plant. The works council is insisting on a long-term strategy for the plant and its 3000 workers.
Originally, Audi intended to continue producing the luxurious electric SUV, the Q8 e-tron, but demand for it keeps falling, and sales are significantly below expectations. According to the plant supervisor, Thomas Kretz, the factory does not possess its own metalworking shop. The location, sandwiched between a residential area, railway tracks, and a highway, complicates any possible expansions. The logistics costs are substantially higher at this site due to the scarcity of local suppliers. The successor to the Q8 e-tron is set to be constructed in Mexico instead.
The organization has remained tight-lipped regarding rumors spread in Belgian media about potential job losses of 1500 individuals in October and another 1100 in May. Instead, they stated that the necessary legal consultations with the social partners are currently underway, and viable alternatives are being explored. Final decisions can only be made after this process, said a representative from the production board in Brussels. "No definitive choice has been made yet," the spokesperson underscored.
The current situation at the Audi electric car plant in Brussels is causing concern, given its high production costs and the poor sales performance of its sole model. Despite initial plans to produce the Q8 e-tron, its sales have fallen significantly below expectations, forcing Audi to consider alternative production locations.
