Audi is considering the early closure of its Brussels assembly plant and the restructuring of the site. A decline in demand for the Q8 e-tron and Q8 Sportback e-tron, which are made there, comes on top of long-standing structural challenges at the Brussels site along with high logistics costs, according to the carmaker. That has made production costs higher for the Brussels plant compared to other sites.
Audi said the plant layout is difficult to change because of its vicinity to the city centre, though it has informed the Company Council of its intention to carry out a restructuring. The plant has private property on one side and a railway on the other, so expansion is not possible. A spokesperson for Audi told Automotive Logistics that the Brussels plant does not have a press shop and limited local suppliers because of its location so parts are brought in over greater distances and the inbound logistics is more complex and costly.
Audi was keen to stress that no final decision had been made on the future of the plant and it had launched an information and consultation process with the Company Council of Audi Brussels, in accordance with Belgian law. The carmaker said that in the course of this process, company management will discuss solutions for employees and the site together with the responsible social partners, and examine alternatives in detail.
“The announcement of the intention does not mean that a decision has been made,” said Volker Germann, CEO of Audi Brussels. “Nevertheless, this news has been felt very profoundly by the employees in Brussels and by me too. A transparent and constructive dialogue is important in the process that will follow. We will take all perspectives into account.”
Gerd Walker, board member for production and logistics, added that the task now is to shape this decision-making process constructively and transparently together with all those involved and to discuss viable solutions in the interests of all.
While demand in Europe for Q8 e-tron has dropped, Audi is already working on plans for a future successor for the model, which will be made at its San José Chiapa plant in Mexico.
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