In great difficulty, the Volkswagen group has just confirmed the permanent closure of the Brussels factory on February 28. The latter notably hosts the production of the Audi Q8 e-tron, which should also end due to lack of sufficient sales.
The automotive sector is going through an unprecedented crisis for several years. If it had started with the Covid-19 pandemicit continues today due to the drop in demand, particularly for electric cars. But the latter are not the only ones responsible for this catastrophic situation.
A reluctant decision
Indeed, many strategic errors have also contributed to this global crisis, not to mention the increasingly strong competition from Chinese manufacturers, who are arriving en masse in Europe. And overall, all European brands are experiencing serious difficulties today, even if they are not all in the same boat. Volkswagen, for example, is one of the most affected. The German firm is unable to sell its electric cars, as the figures for the 3rd quarter have proven.
And this has been going on for a while now, which has led him to implement a vast savings plan. Which was not enough for the Wolfsburg group, which recently announced an even more drastic measure: the closure of three factories. Audi, one of the group’s brands, has just announced that another factory will permanently close its doors on February 28. It is from the Brussels production sitewhich notably hosts the production of the Audi Q8 e-tron.
However, the latter, which we were able to try a little earlier, hardly sells. And in fact, the idea of closing this Belgian factory had already been put on the table this summer. So it will come to fruition from the beginning of next year, as confirmed by the British press agency Reuters. She quotes Peter D’hoore, spokesperson for the ringed brand. The latter explains that‘no alternative to this measure last chance was found by the group.
For his part, Gerd Walker, member of the board of directors of Audi AG and production director indicates that “ the decision to close the Brussels factory is painful. Personally, this is the most difficult decision I have had to make in my professional career. “. For now, the number of employees impacted by this measureand most of whom risk being fired has not been communicated by the manufacturer to the rings. But this decision may be difficult to pass…
Cost reduction
If rumors had grown about a potential takeover of the site by the Chinese manufacturer Nio, the latter had ultimately denied them. Thus, the factory, which only builds one model, will therefore close, barring exceptional events. But what about other Volkswagen factories that are also under threat? Well it is said that they could ultimately stay openin accordance with what the board of directors of the German group requests. A decision that could ease tensions among employees.
The latter had recently spoken out about these closures, calling them “ of a declaration of war on the factory staff. But this measure seemed obligatory, given the drastic drop in demand, qui represents around 500,000 cars per yearall the group’s brands combined. Which precisely corresponds to the production capacity of two assembly sites. But if the latter could be saved, everything will not be rosy for the employees either, on the contrary.
Indeed, last September, Volkswagen announced in particular that it would end its agreement on the employment guarantee, in force for more than 30 years. In addition, the group will reduce “indirect personnel costs”, such as Christmas and holiday bonuses, as well as subsidies for rail costs and discounts on cars purchased by employees. More than 900 million euros would have already been set aside to implement this draconian plan.
