Volkswagen's most modern plant is on the verge of closure

Audi is facing a serious decision: the Brussels factory, which specializes in electric vehicles, could close. Despite an intensive search for investors and new possible uses, no solution is emerging. 3,000 jobs are at risk.

Volkswagen has been in crisis for a long time

Audi’s electric vehicle factory in Brussels, where the Audi Q8 e-tron is currently being built, faces an uncertain future. The Volkswagen Group has rejected all offers from potential investors for the ailing plant. This significantly increases the risk of a possible factory closure. Gerd Walker, Audi’s board member for production and logistics, explained that none of the 26 interested parties and potential investors had presented a “viable and sustainable concept” for the future of the plant. Even a recently revised offer failed to convince those responsible. The company’s internal search for alternative uses or future vehicle production was also unsuccessful.

First VW factory closure in Europe?

How Bloomberg reports, the Brussels location could become the first Volkswagen plant in Europe to be closed. The factory has long been struggling with weak demand for the electric SUV produced there by the Volkswagen subsidiary Audi. In addition, the central location of the plant makes necessary expansions and logistical adjustments that would be necessary for more economical production more difficult.

The crisis in Brussels is symptomatic of the challenges facing the entire Volkswagen Group. Sluggish demand for electric vehicles, a lack of affordable models and technologically leading competitors such as Tesla and BYD are putting Europe’s largest car manufacturer under increasing pressure. The Brussels plant is not the only one that could be affected by possible closures. The massive overcapacity at the German locations is forcing the Volkswagen brand to consider plant closures in Germany for the first time in its 87-year history. In addition, long-standing agreements on job security are being called into question.