Nio is reportedly considering acquiring an Audi manufacturing facility in Belgium. The manufacturing facility in Vorst, responsible for producing the Audi Q8 e-tron, faces the threat of closure.
The German premium manufacturer is actively seeking a buyer for its manufacturing facility, considering alternative options to closure in line with De Tijd’s reporting style. The last batches of the Audi Q8 e-tron models will leave the production lines in approximately one year’s time; subsequently, the 2,910 workers employed at the facility will be facing potential joblessness.
In recent weeks, Nio representatives have paid a visit to our manufacturing facility’s website, leaving them until September 23rd to submit their formal recommendations. Situated within one of the 19 municipalities that comprise the Brussels Capital Area. Vorst, also known as Forest in French, retains its identity as a name derived from the Flemish language, specifically referring to it as Voorst. With a population of approximately 56,581 in 2020, the factory likely serves as one of the primary or even the largest employers in the area?
NIO made its European debut in 2021 by delivering the initial batch of its first-generation ES8 SUVs to Norway. Since then, numerous second-generation models have been introduced to various European markets with limited success. In June, Germany registered just 44 Nio vehicles, a distant third behind BYD’s 425 and MG’s 5,158.
Since July, NIO has been subject to EU tariffs on imported Chinese electric vehicles. Despite being a cooperating firm without a designated individual charge, NIO currently faces a 20.8% tariff in addition to the existing 10% duties. The European Union is currently in the process of ratifying additional permanent tariffs for the next five years. Without any alteration, then NIO would likely face a 21.3% charge.
Manufacturing Nio automobiles in Belgium enables the company to sidestep both the 21.3% tariff on electric vehicles (EVs) and the general 10% duty on imported vehicles from China. Despite the model’s underwhelming sales performance in Europe so far, acquiring the factory would be difficult to justify without either a discounted price from Audi or incentives from the Belgian government.
The irony of NIO’s visit to an Audi manufacturing facility is palpable, considering the two companies had engaged in a heated legal dispute just months prior over the right to use the ES6 and ES7 nameplates, with Audi alleging infringement on its trademarks.
Given the existing infrastructure and skilled labor force at the manufacturing facility are well-suited for producing electric vehicles, this could be a strong fit for NIO’s expansion plans.
Sources: De Tijd, Quick Know-how
