Volkswagen considers closing Audi electric car plant in Brussels

Volkswagen is considering closing the Brussels plant of its luxury brand Audi. The reason is a sharp drop in demand for the expensive electric cars made there. Volkswagen has not closed a plant in almost four decades, Reuters noted.

Audi said today that Volkswagen is considering ending production of the Q8 e-tron and Q8 Sportback e-tron ahead of schedule. These are the only models currently made in Brussels. Audi will now begin restructuring the plant and look for alternatives for its future. However, the plant, which has around 3000 employees, could ultimately be closed. It produced 50.000 cars last year.

Volkswagen last closed a plant in Pennsylvania in 1988. Reuters also noted that the most recent head of the VW brand to threaten to close a plant in Europe stepped down several months after making the threat.

Automakers have invested heavily in capacity and technology development. They have therefore been hit hard by lower-than-expected demand for electric cars. Audi warned earlier this year that its sales would fall this year as it works to launch new models while also cutting costs.