It is reported that Nio is considering buying an Audi factory in Belgium. Currently, the factory in Vorst, which produces the Audi Q8 e-tron, is under threat of closure.
According to Flemish newspaper De Tijd, the German premium producer is actively looking for a purchaser for the factory as the only alternative to its closure. The last examples of the Audi Q8 e-tron are set to roll off the production line next year, after which the 2,910 workers employed at the factory will face redundancy.
Over the past few weeks, a delegation from Nio has visited the factory site and they have until September 23 to make an offer formally. The plant is located in one of the 19 municipalities which make up the Brussels Capital Region. Vorst is also known as Forest (in French), the former being its name in the Flemish language. Given that the 2020 population level was just 56,581, the factory is likely one of the biggest, if not the biggest, employer in the area.
Nio first entered the European market in 2021 with deliveries of the first-generation ES8 to Norway. Since then, it has introduced a number of second-generation vehicles to various European markets with limited success. In June, the German registrations of Nio vehicles were just 44, compared to 425 from BYD or 5,158 from MG.
Since July, Nio has been subject to the EU tariffs on imported Chinese EVs. As a cooperating company but one that was not given its own individual rate, Nio currently attracts a 20.8% tariff on top of existing 10% tariffs. The EU is currently in the process of ratifying more permanent tariffs for the next five years. If these go through without alteration, then Nio will be subject to a 21.3% rate.
Production of Nio Cars at the Belgian site would avoid both the 21.3% EV tariff and the general tariff of 10% on imported cars from China. However, given the brand’s sluggish sales performance so far in Europe, taking on the factory might be hard to justify without either a knockdown price from Audi or sweeteners from the Belgian government.
NIO’s interest in an Audi factory is ironic, seeing that earlier this year, the two companies were locked in a legal battle over the right to use the ES6 and ES7 names, which Audi claimed infringed upon its rights.
Given that both the factory and workforce have been used to produce an electric car could make it a good fit for Nio.
Sources: De Tijd, Fast Technology
