Nio eyes Audi's Brussels plant in what would be a landmark deal

19 September 2024

Chinese EV manufacturer Nio is reportedly considering acquiring the Audi Brussels car plant in the city of Vorst. This news, first reported by Belgian media outlet De Tijd, has sent ripples through the automotive industry, hinting at both Nio's European ambitions and the challenges Audi faces.

The Audi Brussels plant, which currently manufactures the Q8 e-tron electric SUV, is slated to cease production next year. Audi's parent company, Volkswagen, has decided not to build any more cars at the facility, leaving its future in limbo. The potential closure poses a significant threat to the plant's 2,910 employees.

Nio's interest in the plant comes at a time when the company is navigating a complex landscape in Europe. The Chinese EV maker entered the European market two years ago with high hopes, but its expansion hasn't been as smooth as anticipated. A significant challenge is the proposed increase in European import tariffs on Chinese EVs. Currently, Nio faces a 20.8% tariff on its vehicles in addition to the original 10% levy. This is a substantial increase, and it prompted Nio to explore production options in Europe to circumvent the tariffs.

Nio's European presence currently extends to Norway, Germany, the Netherlands, Sweden, and Denmark. While the company has yet to enter the Belgian market, acquiring the Audi Brussels plant could provide a strategic foothold for expansion in the region.

The EU is expected to vote on September 25 on whether to impose definitive tariffs on EVs imported from China. If approved, the tariffs could take effect as early as November unless a qualified majority of member states votes against it. Nio has publicly opposed the additional tariffs.

Currently, Nio operates two vehicle assembly plants in China, both situated in Hefei, Anhui province. The potential acquisition of the Audi Brussels plant would be a significant step in Nio's global expansion strategy.

Source (paywall)