Volkswagen’s luxury division, Audi, is exploring potential investment options for its underperforming Brussels plant, according to a company spokesperson on Tuesday. The spokesperson confirmed that discussions with a prospective investor, identified as a commercial vehicle manufacturer, are underway.
In addition to these talks, Audi has established a working group focused on identifying alternative uses for the Brussels facility, although no decisions have yet been reached. This development comes amid broader cost-cutting measures within Volkswagen, which is contemplating the closure of three plants in Germany due to economic pressures.
The Brussels site, which employs approximately 3,000 workers, has been flagged for potential closure due to dwindling demand for Audi’s higher-end electric vehicles. Currently, the factory produces the Audi Q8 e-tron, an electric luxury SUV, but production of this model is set to halt in February 2024.
This situation underscores the challenges facing the automotive industry as manufacturers adapt to shifting market demands and economic conditions. Audi’s discussions with a potential investor reflect a strategic effort to explore viable alternatives for the Brussels plant, which has struggled to maintain profitability in an increasingly competitive landscape for electric vehicles.
As the negotiations progress, the future of the Brussels facility and its workforce remains uncertain, highlighting the ongoing pressures within the automotive sector as companies seek to balance production capacities with consumer demand.