Volkswagen could shut its first plant in Europe ever. Because it appears to chop prices amid falling EV gross sales, Volkswagen warned a doable Audi meeting plant closure in Brussels is an choice.
It’s been 26 years because the doorways have been shut at VW’s Westmoreland meeting manufacturing unit in Pennsylvania, its final plant closure.
Nonetheless, that would quickly change. Volkswagen’s Audi stated in a press release Tuesday that it’s contemplating ending Q8 e-tron manufacturing early. The Q8 e-tron is the one mannequin constructed at Audi’s website in Brussels.
Plant administration has already reached out to the Firm Council, saying plans to restructure the positioning.
Audi stated closing the plant could be doable if no alternate options have been reached. “The announcement of the intention doesn’t imply {that a} choice has been made,” based on Volker Germann, CEO of Audi Brussels. He added, “We’ll take all views into consideration.”
The transfer comes as Audi’s gross sales fell over 11% within the second quarter of 2024. Audi claimed the decline is a part of a broader international slowdown within the electrical luxurious phase.
Volkswagen eyes Audi EV plant closure in Brussels
Audi’s Q8 e-tron and Q8 Sportback e-tron, each produced in Brussels, have been hit laborious. Volkswagen bought 17,900 Audi Q8 e-tron (together with Sportback) fashions within the first half of 2024, down from the 19,500 handed over in 1H 2023.
The decline comes as total VW Group EV deliveries fell to 317,200 within the first half of the yr from 321,600 final yr (-8%). Its best-selling EVs have been the next:
- VW ID.4 and ID.5: 86,800
- VW ID.3: 66,200
- Audi This fall e-tron: 52,100
- Škoda Enyaq: 29,400
- CUPRA Born: 18,200
- Audi Q8 e-tron: 17,900
- Volkswagen ID. Buzz: 14,600
Volkswagen was hit particularly laborious in China (falling practically 20% YOY) as home EV makers like BYD proceed launching longer-range, lower-priced electrical automobiles. The corporate cited a “extremely aggressive atmosphere ” for the fallout.
Regardless of this, VW stated its order financial institution in Western Europe rose to round 170,000. With the brand new VW ID.7 Tourer, Audi Q6 e-tron (see our new evaluation), and Porsche Macan Electrical rolling out, the model expects momentum to shift.
Electrek’s Take
Volkswagen lowered its working returns steerage from 7 to 7.5% to six.5 to 7% after EV gross sales slid. Its luxurious model, Porsche, additionally lowered its earnings outlook.
Porsche trimmed its earnings forecast to €3.5 billion ($3.8 billion) from €5.5 billion ($6 billion) after Taycan deliveries slipped 51% in Q2. The luxurious model expects demand to choose up with the up to date 2025 Taycan and new Macan Electrical rolling out within the second half of the yr.
Nonetheless, will Volkswagen flip issues round in China? One among its (if not the) most vital markets. VW faces stiff competitors from home EV makers like BYD.
BYD launched its new 2025 Dolphin EV this week. The brand new Dolphin, certainly one of BYD’s top-selling EVs, nonetheless begins at underneath $13,700 (RMB 99,800), however it options much more vary.
Though BYD is finest recognized for its low-cost EVs, just like the Dolphin, Atto 3, and Seagull (Dolphin Mini abroad), it’s increasing into electrical luxurious autos, pickups, mid-size SUVs, and supercars.
BYD’s new luxurious electrical sedan, the Yangwang U7, hit showrooms in China this week as the newest Porsche challenger.
Porsche hopes its new Macan Electrical, outfitted with CATL batteries, can compete on this planet’s largest EV market.
What do you guys assume? Can Volkswagen flip issues round? Or will issues worsen from right here? Tell us your ideas under.
FTC: We use earnings incomes auto affiliate hyperlinks. Extra.
