3,000 jobs at stake as Audi moves to halt production in Brussels

Admin I Tuesday, October 29, 2024

 

LAGOS, Nigeria – German carmaker Audi plans to end car production at its Brussels plant at the end of February, the company told trade unions and labour representatives on Tuesday.

Layoffs are not planned until the end of the year, the company said. The factory employs around 3,000 people and produces only a single Audi model, the Q8 e-tron electric SUV.

Audi has been considering closing the Brussels plant for some time and has been consulting with the works councils and trade unions for months, as required by law in Belgium.

Company management plans to complete this information and consultation process in the next two weeks.

Sales of the Q8 e-tron SUV have been shrinking, and Audi executives have said that the factory has very high logistics costs because few suppliers are located nearby.

The factory’s location between a residential area, railroad tracks and a motorway makes expansion difficult, according to Audi.

Audi’s parent company, the Volkswagen Group, is facing a deep crisis at the flagship Volkswagen brand and has rejected the possibility of launching the production of a new vehicle model in Brussels.

Talks are still under way with a potential investor, according to Audi. The company had already spoken to more than 20 potential investors from the automotive industry, without any prospect of a viable concept for the site and the employees who work there.