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Audi admits closing its Brussels factory due to low sales of electric vehicles

German carmaker Audi has announced plans to close its electric vehicle factory in Brussels, citing a “global slump” in demand for the high-end vehicles.

The manufacturer, a subsidiary of Volkswagen, indicated that wants to “anticipate the stoppage of production” of the Q8 e-tron SUV models at the factory, which employs around three thousand people.

While seeking “solutions for the factory” in Brussels, the manufacturer does not fail to admit that one of them could include “a cessation of activities, if no other alternative is found,” it said in a statement.

Audi cited a “global decline in customer orders in the luxury electric vehicle segment” to justify the decision.

After investing massively in electric vehicles in recent years, carmakers have been hit by slowing demand in the sector.

Volkswagen, whose 10 brands include Porsche, Seat and Skoda, said closing the Brussels factory or finding another use for it, as well as other unforeseen costs, would have an impact of 2.6 billion euros in the 2024 financial year.

“The announcement of intention does not mean that the decision has been made,” said Audi Brussels CEO Volker Germann.

VW has already announced a profit drop of more than 20% in the first quarter, due to falling sales of higher-priced models, including Audi.

Volkswagen profits fall 22.4% to €3.266 billion in Q1

Source: Observadora

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