Will Volkswagen close its first European factory? As Volkswagen slashes prices amidst declining electric vehicle sales, the company has ominously threatened that shutting down its Audi production plant in Brussels could be a possibility.
For nearly three decades, the doors had remained closed at Volkswagen’s Westmoreland manufacturing facility in Pennsylvania – a legacy that came to an end with the plant’s recent and final shutdown.
Nonetheless, that might quickly change. Audi announces plans to potentially cease production of the Q8 e-tron earlier than expected, according to a statement released on Tuesday. The Audi Q8 e-tron is the sole model manufactured at Audi’s plant in Brussels.
The plant administration has already reached out to the Firm Council, indicating a desire to restructure its organizational layout.
If no alternative solutions are found, Audi may consider shutting down the facility. “The announcement of intentions does not necessarily suggest that a definitive decision has been made,” in response to Volker Germann, CEO of Audi Brussels. As he spoke, he emphasized that all perspectives would be carefully considered.
As Audi’s gross sales plummeted by more than 11% in the second quarter of 2024, a stark indicator of the brand’s declining fortunes. Audi attributed its sales slump to a broader global downturn in the premium electric vehicle segment.
Volkswagen considers shutting down its electric vehicle (EV) manufacturing facility in Brussels, Belgium, amidst concerns over profitability and a reevaluation of production strategies.
Audi’s production of the Q8 e-tron and Q8 Sportback e-tron models, manufactured at its facility in Brussels, has been disrupted. Volkswagen reported a total of 17,900 Audi Q8 e-tron and Sportback models sold during the first half of 2024, a decline from the 19,500 units delivered in the same period last year.
Total VW Group electric vehicle (EV) deliveries decreased by 8% year-on-year to 317,200 in the first half of the year, down from 321,600 in the same period last year. Its best-selling electric vehicles have been the Tesla Model 3 and the Nissan Leaf.
- 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 suffered a significant decline in China, with sales plummeting nearly 20% year-over-year, as local electric vehicle (EV) manufacturers such as BYD continued to introduce more affordable and longer-range models, further eroding the German automaker’s market share. The company attributed the incident to an “unusually aggressive network configuration”.
Volkswagen announced that its order book with a leading financial institution in Western Europe had grown to approximately 170,000 units. As the VW ID.7 Tourer, Audi Q6 e-tron, and Porsche Macan Electric hit the market, the electric vehicle landscape is poised for a significant shift in momentum.
Electrek’s Take
Volkswagen revised its expected profit margin downward, narrowing the range from 7% to 7.5% to 6.5% to 7%, following a decline in electric vehicle sales. The luxury automaker Porsche has revised its earnings forecast downward.
Porsche has reduced its estimated profits to €3.5 billion (approximately $3.8 billion), a downward adjustment from the initially projected €5.5 billion (around $6 billion), following a 51% decline in Taycan deliveries during the second quarter. The luxury brand anticipates a surge in demand with the launch of its updated 2025 Taycan and new Macan Electric models, scheduled for release in the second half of the year.
Despite recent challenges, can Volkswagen turn things around in China? Regarded by many as the most crucial market. Volkswagen faces intense competition from domestic electric vehicle (EV) manufacturers such as BYD, which poses significant challenges to its market share.
BYD unveiled its highly anticipated 2025 Dolphin electric vehicle to the public this week. Despite being a top-seller among BYD’s electric vehicles, the brand-new Dolphin starts at an affordable price of under $13,700 (RMB 99,800) and offers even more value.
While BYD is most renowned for its affordable electric vehicles, such as the Dolphin, Atto 3, and Seagull (Mini Dolphin internationally), the company is expanding its portfolio to include luxury EVs, pickup trucks, midsize SUVs, and even high-performance supercars.
BYD’s latest offering, the Yangwang U7, a luxurious electric sedan, has officially entered the Chinese market, vying for dominance alongside Porsche.
Porsche is poised to launch a formidable challenger in the world’s largest electric vehicle (EV) market with the introduction of its new Macan Electric, which boasts state-of-the-art CATL batteries.
What do you guys suppose? Can Volkswagen flip issues round? Will problems escalate from this point forward? Tell us your ideas under.
