Brussels, Belgium – Audi has announced the closure of its Brussels electric vehicle (EV) factory on February 28, 2025, marking a significant setback for the EV manufacturing sector. This “painful decision,” as described by Audi, follows failed attempts to sell the facility and reflects a broader slowdown in demand for electric vehicles.
Table of Contents
1.Impact on Jobs and Production
The closure will affect approximately 3,000 employees, with Audi confirming that no viable alternatives could be found to keep the factory operational. The 350,000 sq.ft Brussels plant, a key production site for Audi’s flagship Q8 e-tron and Q8 e-tron Sportback models since 2022, produced only 53,555 vehicles in 2023—less than half of its maximum capacity of 120,000 vehicles annually.
2.Challenges in the EV Market
The decision to shutter the Brussels factory highlights the challenges facing the EV market in Europe. Audi cited a global decline in customer orders for luxury electric vehicles, compounded by rising production costs and structural inefficiencies at the Brussels site.
Additionally, Audi’s focus is shifting toward smaller, more affordable electric SUVs like the Q4 e-tron and Q6 e-tron, which are better aligned with current market demand.
3.Industry-Wide Trends
The automotive sector in Europe is grappling with a broader slowdown in EV sales. Consumers appear to be favoring traditional petrol-powered vehicles again, as high costs and economic uncertainty weigh on EV adoption. Globally, sales of electric vehicles dropped by 3% in the first quarter of the year, while petrol vehicle sales rose by 4%.
Other automakers are also feeling the strain. Stellantis has announced plans to close its electric van factory in Luton, UK, blaming the Zero Emission Vehicle (ZEV) mandate. Workers have staged protests against the closure, highlighting the ripple effect on jobs across the industry.
4.Audi’s Statement
Gerd Walker, a board member of Audi AG, described the decision as one of the most challenging of his career, emphasizing the complexity of the factors involved, including high delivery costs and the factory’s location near the city center, which limits restructuring opportunities.
Despite the setback, Audi remains committed to its broader EV strategy, even as it pivots toward more competitive and scalable models to meet evolving market needs.
