The transition to electric cars is proving difficult for the Volkswagen Group. The automotive conglomerate has faced numerous delays, software problems, and overly optimistic forecasts, leading to a serious reconsideration of their short and medium-term strategy.
A few months ago, CEO Oliver Blume internally warned that plans included reducing costs by 10 billion euros over the next three years. Just days ago, CFO Arno Antlitz anticipated a drop in sales of half a million units in the coming years.
The Brussels Plant in the Crosshairs
One of the plants in the spotlight is the one in Brussels. The company completely redesigned this factory in 2020 to exclusively produce the Audi Q8 e-tron, which was then still called the e-tron, their flagship electric car.
However, rapid advancements in technology quickly rendered the vehicle obsolete. The same happened to competitors like the Mercedes EQC or Jaguar i-Pace.
The Q8 e-tron’s Struggle
Despite efforts to revitalize the Q8 e-tron, including a name change and improved range, the car has become commercially “old.” Its main rival within the company is the new Audi Q6 e-tron, which boasts a new platform, larger battery, and a significantly lower price.
This has left the Audi Q8 e-tron struggling. According to Electrek, in the first half of 2024, Audi delivered 17,900 units of its electric SUV, slightly lower than the 19,500 units the previous year.
The Brussels Plant Crisis
These low sales figures have put the Brussels factory in the crosshairs. The plant has been idle since July due to lack of demand, and the company is clear about wanting to close it. About 3,000 jobs are at stake.
Workers’ Response: “Kidnapping” Cars
As negotiations begin, workers have their pressure measure: kidnapping the cars. Jan Baetens, a representative of the ACV-Metea union, stated: “We’re taking the keys to maintain a peaceful social dialogue. If management wants to remove the cars now, we can’t guarantee safety or peace.”
The union demands transparency from Volkswagen and asks the company to pay for a strategy that has proven wrong for the plant. As a pressure measure, workers have seized between 200 and 300 cars that are nearing completion by simply taking the keys to a safe place.
The Ongoing Dispute
The company has labeled this action as “blackmail” and threatened to report the involved workers if they don’t return the keys. According to the company, these workers are fully identified with the help of the facilities’ cameras.
As the conflict unfolds, it’s clear that both Audi and Volkswagen are going through a difficult time with electric cars. The Ingolstadt company is trying to regain momentum with the launches of the Q6 e-tron and the redesign of its sedan offerings.
However, the demand for electric cars has forced Volkswagen to resize its plans and continue investing in thermal models. Audi launched into electric cars almost as the only way forward and has ended up looking for an alternative platform in China to improve its products and solve software problems that hindered the launch of its Q6 e-tron and the electric Porsche Macan.
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