Volkswagen’s cutting-edge EV factory spirals toward collapse as demand crumbles

Volkswagen’s Brussels plant, the home of the Audi Q8 E-Tron, is on the verge of an unprecedented closure.

Struggling to meet demand in a softening electric vehicle (EV) market, the company is confronting the harsh reality that one of its most historic factories — producing Volkswagens since 1949 — may soon shut its doors for good. This would mark a significant turning point for both Volkswagen and the European EV market.

EV sales fall short of expectations

The Audi Q8 E-Tron, priced at around €80,000 ($86,500), was expected to be a major player in Volkswagen’s electric lineup. However, the numbers tell a different story. Despite the Brussels plant having a 120,000-vehicle production capacity, sales of the Q8 E-Tron have been underwhelming. In 2022, the factory produced just 47,900 units, and the number dropped to 37,400 last year. This year, only 23,900 vehicles have been delivered.

Volkswagen had hoped for a turnaround, but as demand for high-end EVs falters, the automaker is now looking to shut down production at the Brussels plant. With no viable alternatives for repurposing the facility, the future looks bleak.

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Unions protest as workers fear job losses

The closure of the Brussels plant could result in the loss of 3,000 jobs, sparking outrage among workers and unions. “The only thing they want to do is close the plant as quickly as possible.,” said Ronny Liedts of the ACV-CSC union. “None of the alternatives work for them.”

Protests have already taken place in the Belgian capital, with workers and unions warning of further strikes. They argue that the problem isn’t a lack of interest in EVs but rather that European automakers are pricing their electric models beyond the reach of average consumers.

"Car manufacturers wanted to make big profits with electric vehicles right away and did not accept that the transition phase would generate fewer dividends and profits," said Hillal Sor, a trade unionist at Metallos FGTB. "So they bet everything on large, very luxurious, very expensive models that European citizens cannot afford. And so now in Europe we have overproduction, and that's why groups like Volkswagen want to close factories in Belgium and Germany."

Final thoughts

Volkswagen’s predicament in Brussels reflects a broader challenge facing the European electric vehicle market. While EV adoption is increasing, it’s happening at a slower pace than many automakers anticipated. In the first eight months of this year, electric vehicles made up only 12.6% of all car sales in the European Union.

Critics suggest that automakers like Volkswagen need to rethink their strategies if they want to drive demand for EVs. Instead of focusing on expensive, luxury models like the Q8 E-Tron, more affordable and accessible electric cars could be the key to unlocking widespread adoption.

Chinese automotive manufacturers are threatening to undercut European automakers with much cheaper EV offerings unless the EU passes blanket tariffs on Chinese EVs. As Volkswagen faces the potential closure of one of its most advanced plants, it’s clear the company — and the industry at large — will need to adapt to the shifting landscape of EV demand.

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