The emblem of German automotive producer Audi is displayed on the plant of Audi Hungary, one of many world’s largest engine factories, in Gyor, Hungary on November 7, 2023, previous to festivities to have a good time the thirtieth anniversary of Audi Hungaria. The Hungarian subsidiary of German automotive producer of luxurious autos began the serial manufacturing of it’s new technology electrical engine. (Photograph by Attila KISBENEDEK / AFP)
Frankfurt, Germany — German luxurious carmaker Audi stated Tuesday it’s contemplating closing its Brussels plant making electrical autos because of a worldwide decline in demand for high-end electrical automobiles.
The producer, whose guardian firm is Volkswagen, stated it’s weighing up the “early finish of manufacturing” of its Q8 e-tron fashions on the manufacturing facility.
Administration are discussing “options for the (Brussels) website,” and this “can also embrace a cessation of operations if no different is discovered”, it stated in a press release.
READ: Audi CEO: planning electrical automobile manufacturing facility in U.S. because of IRA
The location employs about 3,000 folks.
Audi cited a “world decline in buyer orders within the electrical luxurious class section” as a motive.
After investing closely within the shift to electromobility lately, automakers have been hit exhausting in latest occasions by slowing demand for electrical autos.
Volkswagen — whose 10 manufacturers additionally embrace Porsche, Seat and Skoda — stated closing the Brussels plant, or discovering different makes use of for it, in addition to different unplanned bills would have an effect of as a lot as 2.6 billion euros ($2.8 billion) within the 2024 monetary 12 months.
Consequently, the automobile big lowered its forecast for working returns this 12 months to six.5-7.0 % from 7.0-7.5 % beforehand.
In addition to the slowdown in demand for electrical automobiles, Audi cited “long-standing structural challenges” on the Brussels website.
These embrace a plant format that’s exhausting to vary and excessive logistics prices.
A session course of will now be carried out about subsequent steps, Audi stated.
“The announcement of the intention doesn’t imply {that a} determination has been made,” stated Volker Germann, CEO of Audi Brussels.
“Nonetheless, this information has been felt very profoundly by the staff in Brussels.”
Rita Beck, spokeswoman for the Audi Committee within the European VW Group Works Council, stated Audi employees representatives had been “calling for long-term prospects for the plant and our colleagues in Brussels. Audi administration should take duty for the positioning.”
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Within the first quarter of this 12 months, Volkswagen reported a greater than 20-percent fall in earnings with deliveries of costlier fashions, together with Audis, slipping.
