Volkswagen warns it may close an Audi EV plant

Volkswagen today cautioned that it may close an Audi plant in Brussels, due to a sharp decline in demand for its high-end electric vehicles (EVs).

The company said such a move could lead to financial impacts of up to €2.6 billion ($2.8 billion) in 2024.

The Brussels plant produces the Audi Q8 e-tron, but demand for this model has dropped significantly, the carmaker revealed.

It noted that ‘structural challenges’ and high logistics costs have further complicated the situation at the Brussels site, which employs around 3,000 people.

If it goes ahead, it would mark the first plant shutdown for Volkswagen since 1988.

Volkswagen made EV headlines last month as it stuck a deal to collaborate with Rivian, one of America’s electric vehicle pioneers.

It envisages a technology exchange and partnership between the German carmarker, which would benefit from an accelerated development of EVs, and Amazon-backed Rivian, which would be helped to scale up its approach to car manufacturing.

New Audi Q8 e-tron models sell for close to €90,000 each.