Audi Brussels to close in early 2025, signaling deepening VW crisis

German carmaker Audi will close its Brussels plant on Feb. 28 next year, the company’s management announced at a special works council meeting Tuesday. 

Management added it is still in talks with a potential buyer to take over the Belgian plant, which has been facing the ax for several months due to poor sales and a crisis affecting its owner, the Volkswagen Group. 

No layoffs are expected until the beginning of 2025, and the plant’s management continues to talk with a potential investor who might take over the factory, although not necessarily to continue making passenger vehicles. A savior could emerge from the commercial vehicle sector, for example, with unions suggesting a manufacturer of tractors.

Large demonstrations were held at the facility in mid-September to save the plant and jobs.

Audi is a subsidiary of Volkswagen, which just two days ago reported plans to close three German plants. It would be the first time in the company’s 87-year history that it has closed production facilities in its home market.

While unprecedented, however, the closures would come as no surprise, as the automaker is facing a sharp decline in sales in China, its core market, and is also being challenged by Chinese competitors entering the European market.

According to Handelsblatt, Volkswagen management is still trying to avoid the closures in Germany by cutting salaries and bonuses. According to recent proposals, a 10 percent across-the-board pay cut at the core VW brand would save nearly €800 million a year.