Volkswagen could shut its first plant in Europe ever. Because it seems to chop prices amid falling EV gross sales, Volkswagen warned a potential 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 web site in Brussels.
Plant administration has already reached out to the Firm Council, saying plans to restructure the location.
Audi stated closing the plant can be potential if no options have been reached. “The announcement of the intention doesn’t imply {that a} determination has been made,” in accordance with Volker Germann, CEO of Audi Brussels. He added, “We’ll take all views under 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 section.
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 arduous. Volkswagen offered 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 12 months from 321,600 final 12 months (-8%). Its best-selling EVs have been the next:
- VW ID.4 and ID.5: 86,800
- VW ID.3: 66,200
- Audi This autumn 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 arduous in China (falling almost 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 evaluate), 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 diminished 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 12 months.
Nonetheless, will Volkswagen flip issues round in China? Certainly one of its (if not the) most necessary markets. VW faces stiff competitors from home EV makers like BYD.
BYD launched its new 2025 Dolphin EV this week. The brand new Dolphin, one in all BYD’s top-selling EVs, nonetheless begins at below $13,700 (RMB 99,800), but it surely options much more vary.
Though BYD is greatest identified for its low-cost EVs, just like the Dolphin, Atto 3, and Seagull (Dolphin Mini abroad), it’s increasing into electrical luxurious automobiles, pickups, mid-size SUVs, and supercars.
BYD’s new luxurious electrical sedan, the Yangwang U7, hit showrooms in China this week as the most recent Porsche challenger.
Porsche hopes its new Macan Electrical, outfitted with CATL batteries, can compete on the earth’s largest EV market.
What do you guys suppose? Can Volkswagen flip issues round? Or will issues worsen from right here? Tell us your ideas beneath.