Audi to close Brussels plant in February 2025

What had already become apparent with the unsuccessful search for an investor is becoming reality: the Audi plant in Brussels will cease production at the end of February 2025. This makes the factory the first production facility that the Volkswagen Group has closed in Europe for decades.

Image: Audi

The 3,000 employees at the Audi plant in Brussels were hoping for a last-minute solution but have been disappointed: Audi is closing the site and informed the works council and trade unions of the decision on Tuesday. It is not yet known what will happen to the employees, but there will be no premature redundancies before the factory closes on 28 February.

The closure is not a surprise, but has been on the cards for a long time: Audi had repeatedly publicly denounced the plant in the Belgian capital, where the Q8 e-tron and its Sportback offshoot are currently being built, over the course of the year. The successor to the Q8 e-tron is to be built in Mexico and Audi will not be outsourcing any new models to the Belgian plant. As German sites in the VW Group are now also on the brink of collapse, the chances for Brussels – even with another Group brand – had diminished further. In mid-September, Audi’s Chief Operating Officer Gerd Walker announced in an interview that the company was focussing on the search for potential investors.

The successor to the Q8 e-tron will be manufactured in Mexico, and Audi will not award any new models to the Belgian plant. As some German sites within the VW Group are now also on the brink of collapse, the chances for Brussels – even with another Group brand – have diminished further. In mid-September, Audis Chief Operating Officer Gerd Walker stated in an interview that the company was focussing on the search for potential investors.

Around a fortnight ago, Audi then announced that it had been unable to find a suitable investor for Brussels, which led to the scenario of a plant closure materialising. There were probably 26 interested parties and potential investors, but according to Walker, they were unable to present a “viable and sustainable concept” for the future of the factory. An internal search within the Volkswagen Group for future car production or alternative uses for the plant had also remained unsuccessful.

This makes Brussels the first VW plant in Europe to be closed. As the responsible negotiator for the ACV-CSC union at the plant, Ronny Liedts, stated a fortnight ago, it is likely that the approximately 3,000 factory workers will lose their jobs. Liedts also levelled accusations against Audi: “The only thing they want is to close the plant as quickly as possible. None of the alternatives are an option for them.”

Audi had repeatedly criticised that the location of the plant hindered expansion and internal logistics – both of which were necessary to operate the site economically. The plant is located directly on the railway line, which is why no expansion areas are actually accessible. In addition, there is no body shop on site, which is why stand-alone production is not possible in Brussels – important body components have to be supplied from other plants.

However, regardless of the challenges at the site itself, Audi also has a problem with the demand for the model built in Brussels. The factory in Belgium is designed for a capacity of 120,000 vehicles per year. Audi reached its peak in 2022 with 47,900 cars built in Brussels, compared to 37,400 Q8 e-tron in 2023. According to the VW Group’s Q3 delivery figures, Audi has only delivered 23,900 units of the large e-SUV so far this year. In August, there was a media report stating that Audi was only planning to deliver 6,000 vehicles in 2025.

automobilwoche.de, zeit.de (both in German)

1 Comment

about „Audi to close Brussels plant in February 2025“
Sams
30.10.2024 um 10:49
Europe is taxing chinese cars to protect european manufacturers, which in fact penalises european consumers who no longer have access to "cheap" electric cars, while at the same time those same european manufacturers don't hesitate to close european factories for building their cars in Mexico or other poor countries. So at the end european citizens have no cheap cars to buy, and no job to buy any car... Well done Europe!

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