BERLIN — Volkswagen Group has failed to find a buyer for its struggling Audi plant in Brussels, a spokesperson said on Nov. 12, making the closure of the plant likely.
A potential investor from the commercial vehicle sector has withdrawn its expression of interest, the spokesperson said.
“There is no potential investor for the site, so the active search for an investor is over,” said the spokesperson, adding that the focus now was on talks about program to lay off workers.
A working group on alternative uses for the plant had failed to find a viable solution for its immediate future and the short-term preservation of as many jobs as possible, the spokesperson added.
Last month, Audi COO Gerd Walker said that none of the 26 parties and potential investors that had expressed interest in the site had offered a “viable and sustainable concept” for the future of the factory.
Belgian newspaper De Tijd reported in September that the Chinese EV maker Nio was preparing a purchase offer for the factory.
An internal search within VW for future car production or alternative uses for the plant also came up empty-handed, the brand said.
Volkswagen Group, which could close plants in Germany as part of a cost-cutting program, said in July that it was considering closing down the Brussels site, which employs about 3,000 people, due to low demand for its higher-end electric cars.
Audi Q8 E-tron EV production ending by March
The factory currently makes Audi’s electric luxury SUV Q8 E-tron, but production is due to cease at the end of February.
The Brussels site could be the first VW Group plant to close under the cost cuts. Sluggish EV demand, a lack of affordable models and tech-savvy rivals such as Tesla and BYD have pushed Europe’s largest carmaker into one of its most intense cost-cutting programs in years.
VW’s huge production overcapacity at its German sites have forced its namesake brand to weigh German factory closures for the first time in its 87-year history, and to remove three decades of job security agreements with employees.
Audi is restructuring several divisions to speed up decision-making and launch new models more quickly. It’s also pushing ahead with plans to participate in Formula 1 racing starting in 2026.
