Major car brand may discontinue electric vehicle model and close factory amid 'global decline' in sales
Audi could look to close one of its factories in response to falling sales
AUDI
Car manufacturing giant Audi has blamed a "sharp drop" in electric vehicle demand for its decision to announce a major restructuring at one of its production facilities.
In a statement, Audi confirmed that it was considering the early end of production of its Q8 e-tron, which is manufactured at the Brussels plant.
It said it was witnessing a "global decline" in customer orders in the electric luxury class segment, which has impacted the sale of the Q8 e-tron and Q8 Sportback e-tron.
Audi said that the drop in demand for the Q8 e-tron was being seen alongside the ramp-up of new models on the Premium Platform Electric, with orders plummeting.
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No decision has been made on the future of Audi's Brussels factory
AUDI
The German brand also noted issues with the Brussels plant, saying that there are high logistics costs at the production factory.
The facility is also located close to the city centre of the Belgian capital, resulting in difficulties with changing its layout.
With Audi looking to restructure the future of the facility, around 3,000 workers could be impacted by the closure, according to The Brussels Times.
If plans are to go ahead, this could be the first factory shutdown in almost four decades for Volkswagen - the parent company of Audi.
Volker Germann, CEO of Audi Brussels, said: "The announcement of the intention does not mean that a decision has been made.
"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."
According to Reuters, a source hinted at production of the Audi Q8 e-tron ending next year, although this is yet to be confirmed by the brand.
Earlier this year, Audi warned that its sales would dip in 2024 as it worked on developing new electric vehicles while also cutting costs.
It lowered its forecast for operating returns from 7-7.5 per cent down to 6.5-7 per cent, with the earning forecast also dropping from €5.5billion (£4.6billion) to €3.5billion (£2.9billion).
According to the Society of Motor Manufacturers and Traders (SMMT), Audi sold 11,929 vehicles in the UK last month, accounting for a 6.65 per cent share of new vehicles - although this is a 0.25 per cent drop since last year.
Audi fell just behind two other brands in terms of the most new vehicles registered, notably BMW with 13,547 new sales and Volkswagen with 15,458 registrations.
Gerd Walker, Member of the Board of Management of Audi AG for Production and Logistics, said the brand would take responsibility for its employees at all of its locations.
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The Audi Q8 e-tron has seen sales fall in recent months
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He added: "The decision to start the information and consultation process at the Brussels site was made after an intensive review and is supported by Audi AG.
"The task now is to shape this process constructively and transparently together with all those involved and to discuss viable solutions in the interests of all."