Chinese electric vehicle maker Nio is considering buying Audi’s Brussels plant.
The European auto market could soon see a shake-up. Chinese electric vehicle maker Nio has been identified as a potential buyer for Audi’s Brussels plant, a landmark facility that is at risk of going under. A deal that, if completed, could give the plant a new lease on life and strengthen Nio’s presence in Europe.
Why is Nio interested?
For several months, nothing has been going well for the Audi factory in Brussels. Volkswagen Group, which owns Audi, announced in July that it was considering closing the siteThe cause is low demand for the Q8 e-tron, the only model currently produced at the plant. Once a symbol of Belgian automotive know-how, the plant no longer seems to meet the group’s ambitions, as it is considering reorganising its activities in the face of a general decline in sales of the model.
However, everything could change with the arrival of Nio, a rapidly expanding company that sees this opportunity as a way to bypass current commercial obstacles and establish itself firmly on the Old Continent. This is in any case what the Belgian newspaper claims The Time. The purchase of the plant would allow the Chinese automaker to avoid high import duties imposed by the European Union. Currently, the EU applies a 21% tariff on electric vehicles imported from China, as part of an investigation into whether these cars benefit from unfair government subsidies. This tariff barrier is a hindrance for Nio, which wants to increase its market share in Europe.
By producing directly on European territory, the company could avoid these taxes and offer vehicles at more competitive prices for European consumers..
A booming market for Nio
Nio has not yet officially confirmed the information, but according to the Belgian newspaper, The brand is reportedly preparing a serious offer to acquire the factory. A delegation of Chinese investors has already visited the Brussels site, according to Belgian unions. If Nio buys the Audi plant in Brussels, it could represent a relief for employees and the local economyThe closure of the site, planned by Volkswagen, risked leaving hundreds of people without jobs.
For the Belgian unions, a takeover by Nio would therefore be good news. Belgium would benefit directly from this acquisition. By attracting a renowned Chinese manufacturer like Nio, It could position itself as a production hub for electric vehicles in Europe. It could also attract other Chinese investors and encourage technological collaborations between Europe and China in the field of so-called clean vehicles. Even if the takeover of the factory by Nio seems to be on the right track, many questions remain unanswered. In addition, the negotiations with Volkswagen and the Belgian authorities could be complex. In addition, competition in the European market for electric vehicles is intensifying, with brands like Tesla not planning to give up their market share so easily.
Source: www.autoplus.fr
