German legacy automaker Volkswagen is considering closing its inaugural factory in Europe amid its waning electric vehicle sales.
Brussels Audi factory at risk amid EV sales slump
According to the press release, Volkswagen may be forced to close its first-ever factory in Brussels due to a global decline in Audi’s electric vehicle sales.
Audi’s sales reportedly dropped more than 11% in Q2 2024, which the brand claims to be part of a wider slowdown in the global electric luxury market.
The move is apparently part of the parent company’s efforts to cut costs and sustain healthy operations.
If the plan pushes through, it would be the first VW plant to close after 26 long years since the Westmoreland assembly factory shut down.
“The announcement of the intention does not mean that a decision has been made. We will take all perspectives into account.”
Volker Germann, Audi Brussels CEO
Audi may halt Q8 e-tron production
Audi announced Tuesday that it contemplates ending the production of its Q8 e-tron models (including the Q8 Sportback e-tron) earlier than expected at the Brussels site as the sales slump particularly affects them.
Audi Q8 e-tron models’ sales declined from 19,500 units in H1 2023 to just 17,900 in H1 2024. For context, these are the only models using Audi’s European plant for production.
Plant management has already contacted the Company Council about the plans to restructure the Brussels site.
Audi already foretold that the company would not have a choice but to close the plant if they failed to come up with other options.
VW suffers from an overall EV sales drop
Volkswagen’s electric vehicle sales reflect the same downward trend as those of its Audi brand.
In H1 2024, Volkswagen Group’s electric vehicle deliveries dropped by 8% to 317,200 units from the same period last year (321,600).
The German Group’s popular models are as follows:
| Model | H1 2024 |
| VW ID.4 & ID.5 | 86,800 |
| VW ID.3 | 66,200 |
| Audi Q4 e-tron | 52,100 |
| Škoda Enyaq | 29,400 |
| CUPRA Born | 18,200 |
| Audi Q8 e-tron | 17,900 |
| Volkswagen ID. Buzz | 14,600 |
The notable sales decline in VW’s EV sales and deliveries is partly due to the increasingly challenging market in China. Its sales in the Chinese market dropped almost 20% YoY as local players like BYD dominate.
Despite this decline, VW announced its order record in Western Europe surged by about 170,000. The German automaker remains optimistic that its new VW ID.7 Tourer, Audi Q6 e-tron, and Porsche Macan Electric can reverse the recent downward trend.
