Audi Brussels shuts down as Europe’s auto woes deepen
ByAFP
February 27, 2025
Workers launched a prolonged strike to try to prevent the closure of Audi's plant in Brussels - Copyright AFP ADEK BERRY
Matthieu DEMEESTERE
An Audi factory in Brussels billed as the “cradle” of the German carmaker’s electric drive is shutting down production for good on Friday, the latest sign of the woes afflicting Europe’s auto industry.
The plant’s closure, with the loss of 3,000 jobs, comes days before EU chief Ursula von der Leyen is set to present a much-touted action plan to help the auto industry through “the deep and disruptive transition ahead”.
After rising by nearly 10 percent in 2023, global car sales slowed sharply last year, with new registrations rising just 1.7 percent worldwide and declining in the European powerhouses France and Germany.
In terms of electric vehicle (EV) innovation, an Allianz Trade report warned this month that European manufacturers had allowed themselves to be outpaced by US giant Tesla and Chinese rivals BYD and Geely, with European cars too expensive as a result.
Audi, a subsidiary of German auto giant Volkswagen, gave several factors for closing the Brussels plant, the largest private employer in the Belgian capital.
It had switched to producing EVs in 2018 after 70 years of making combustion engine models.
But the company said a global fall in demand for high-end electric sport utility vehicles (SUVs) had tanked demand for its Q8 e-tron, to which the site was exclusively dedicated.
It also cited long-running structural issues at the former Volkswagen factory, saying it suffered from high logistics and production costs.
Workers at the site launched a prolonged strike to try to prevent the closure, with some blaming Audi for being too slow to make the pivot to electric, and then for focusing on a prohibitively expensive model.
“People are being pushed to buy electric, but the infrastructure is not there yet,” said Jan Baetens of the CSC union.
The European Union has set a date of 2035 for phasing out new sales of combustion engine vehicles, and wants EVs to account for a quarter of new registrations this year — up from 15 percent as of January.
But sales have struggled to take off, with European buyers slow to warm to EVs and their higher upfront costs.
– ‘Demand issue’ –
“We have a demand issue at the moment,” said Sigrid de Vries, director general of the European Automobile Manufacturers’ Association (ACEA).
She said it was “by any standards remarkable” that Europe had reached a 15 percent market share in less than five years, “but it’s not enough”.
“We have vehicles readily available to enter the market,” she said, “but we are facing a stagnating demand.”
Worldwide last year, Audi delivered more than 164,000 fully electric models, down eight percent on the previous year.
In China, which accounted for around 40 percent of electric and non-electric global sales, deliveries were down 11 percent.
In Brussels, Audi’s production lines will come to a final halt on Friday, though several hundred people will remain on site for a few months to clean and dismantle machinery or tie up administrative loose ends.
Dozens of workers were in and out of the plant in the days ahead, to empty their lockers and say goodbye.
“It was satisfying work — a shame it is coming to an end,” said Florin Tautu, an engineer who arrived from Romania in 2011 and was tasked with adapting the factory’s infrastructure to new production needs.
Another manager, who asked not to be named, said he was hopeful for the future, “But I feel bad for people who still have a mortgage to pay off, or children in college.”
Audi’s management says dedicated teams have been created within the region’s job centres to help the plant’s workers find new work, with a job fair advertising around 4,000 positions taking place in April.
ByAFP
February 27, 2025
Workers launched a prolonged strike to try to prevent the closure of Audi's plant in Brussels - Copyright AFP ADEK BERRY
Matthieu DEMEESTERE
An Audi factory in Brussels billed as the “cradle” of the German carmaker’s electric drive is shutting down production for good on Friday, the latest sign of the woes afflicting Europe’s auto industry.
The plant’s closure, with the loss of 3,000 jobs, comes days before EU chief Ursula von der Leyen is set to present a much-touted action plan to help the auto industry through “the deep and disruptive transition ahead”.
After rising by nearly 10 percent in 2023, global car sales slowed sharply last year, with new registrations rising just 1.7 percent worldwide and declining in the European powerhouses France and Germany.
In terms of electric vehicle (EV) innovation, an Allianz Trade report warned this month that European manufacturers had allowed themselves to be outpaced by US giant Tesla and Chinese rivals BYD and Geely, with European cars too expensive as a result.
Audi, a subsidiary of German auto giant Volkswagen, gave several factors for closing the Brussels plant, the largest private employer in the Belgian capital.
It had switched to producing EVs in 2018 after 70 years of making combustion engine models.
But the company said a global fall in demand for high-end electric sport utility vehicles (SUVs) had tanked demand for its Q8 e-tron, to which the site was exclusively dedicated.
It also cited long-running structural issues at the former Volkswagen factory, saying it suffered from high logistics and production costs.
Workers at the site launched a prolonged strike to try to prevent the closure, with some blaming Audi for being too slow to make the pivot to electric, and then for focusing on a prohibitively expensive model.
“People are being pushed to buy electric, but the infrastructure is not there yet,” said Jan Baetens of the CSC union.
The European Union has set a date of 2035 for phasing out new sales of combustion engine vehicles, and wants EVs to account for a quarter of new registrations this year — up from 15 percent as of January.
But sales have struggled to take off, with European buyers slow to warm to EVs and their higher upfront costs.
– ‘Demand issue’ –
“We have a demand issue at the moment,” said Sigrid de Vries, director general of the European Automobile Manufacturers’ Association (ACEA).
She said it was “by any standards remarkable” that Europe had reached a 15 percent market share in less than five years, “but it’s not enough”.
“We have vehicles readily available to enter the market,” she said, “but we are facing a stagnating demand.”
Worldwide last year, Audi delivered more than 164,000 fully electric models, down eight percent on the previous year.
In China, which accounted for around 40 percent of electric and non-electric global sales, deliveries were down 11 percent.
In Brussels, Audi’s production lines will come to a final halt on Friday, though several hundred people will remain on site for a few months to clean and dismantle machinery or tie up administrative loose ends.
Dozens of workers were in and out of the plant in the days ahead, to empty their lockers and say goodbye.
“It was satisfying work — a shame it is coming to an end,” said Florin Tautu, an engineer who arrived from Romania in 2011 and was tasked with adapting the factory’s infrastructure to new production needs.
Another manager, who asked not to be named, said he was hopeful for the future, “But I feel bad for people who still have a mortgage to pay off, or children in college.”
Audi’s management says dedicated teams have been created within the region’s job centres to help the plant’s workers find new work, with a job fair advertising around 4,000 positions taking place in April.
Stellantis says 2024 profits fall 70% on N. America troubles
ByAFP
February 26, 2025
Shares in Stellantis fell by more than five percent during morning trading in Paris - Copyright AFP/File MARCO BERTORELLO
The Stellantis car giant — which includes Fiat, Chrysler, Jeep and Peugeot — on Wednesday reported a 70 percent fall in 2024 profits against the previous year because of troubles in North America.
The group, which is looking for a new CEO, also reported a 17 percent fall in sales revenue to 156.9 billion euros ($164.6 billion) which it blamed on “temporary gaps in product offerings” and sales promotions to reduce stocks.
It said profit fell from 18.6 billion euros in 2023 to 5.5 billion euros last year, with the number of cars sold falling by 12 percent.
Shares in the Italian-US-French group — whose 14 brands include Fiat, Peugeot-Citroen, Opel, Maserati, Chrysler, Ram and Jeep — fell by more than five percent in morning trading on the Paris stock exchange.
Stellantis chief executive Carlos Tavares quit in December amid differences over how to confront the group’s profit slump.
“In the 90 days since the leadership transition began, and while the process to select the next CEO within the first half of 2025 continues, the interim leadership team has taken quick, decisive actions to improve the company’s performance and profitability,” said a Stellantis statement announcing the results.
It said this included: “Prioritizing critical launches to better meet evolving customer needs, especially in the US.” The group promised 10 new launches in 2025.
– Trouble in North America –
Stellantis suffered severe difficulties last year due to delayed model launches because of electrical problems and lower sales in North America, its key market.
Third quarter sales in North America plunged by 36 percent by the number of vehicles sold and 42 percent by revenue as the group offered promotional deals as US dealerships struggled to reduce their inventories, with many consumers considering Stellantis vehicles expensive compared to competitors.
The situation improved in the fourth quarter with sales down 28 percent by volume compared to the same period in 2023.
Sales in North America fell by 25 percent by volume in 2024 overall, and 27 percent by revenue.
Sales revenue in Europe, another key market, fell by 11 percent.
The company posted an operating margin of 5.5 percent in 2024, down from 12.8 percent in 2023.
The figure is a key measure of profitability per vehicle, and it fell drastically in the second half of the year as sales volumes fell, it offered rebates and it halted production at some factories, coming in at just 0.3 percent.
Since its creation in 2021 Stellantis had always managed to post double-digit operating margin as Tavares cut costs and trimmed back rebates.
For 2025 Stellantis was vague about the outlook, promising only to boost sales revenue and a single-digit operating margin. It said it expected a real rebound in the second half of the year.
Stellantis has significantly revised its approach since Tavares’s December 1 exit, with the interim CEO giving guarantees to the French and Italian governments on maintaining production and investment in both countries.
It also rolled back plans to cut 1,100 jobs at a US Jeep factory.
The group had 258,000 employees worldwide at the end of 2023.
ByAFP
February 26, 2025
Shares in Stellantis fell by more than five percent during morning trading in Paris - Copyright AFP/File MARCO BERTORELLO
The Stellantis car giant — which includes Fiat, Chrysler, Jeep and Peugeot — on Wednesday reported a 70 percent fall in 2024 profits against the previous year because of troubles in North America.
The group, which is looking for a new CEO, also reported a 17 percent fall in sales revenue to 156.9 billion euros ($164.6 billion) which it blamed on “temporary gaps in product offerings” and sales promotions to reduce stocks.
It said profit fell from 18.6 billion euros in 2023 to 5.5 billion euros last year, with the number of cars sold falling by 12 percent.
Shares in the Italian-US-French group — whose 14 brands include Fiat, Peugeot-Citroen, Opel, Maserati, Chrysler, Ram and Jeep — fell by more than five percent in morning trading on the Paris stock exchange.
Stellantis chief executive Carlos Tavares quit in December amid differences over how to confront the group’s profit slump.
“In the 90 days since the leadership transition began, and while the process to select the next CEO within the first half of 2025 continues, the interim leadership team has taken quick, decisive actions to improve the company’s performance and profitability,” said a Stellantis statement announcing the results.
It said this included: “Prioritizing critical launches to better meet evolving customer needs, especially in the US.” The group promised 10 new launches in 2025.
– Trouble in North America –
Stellantis suffered severe difficulties last year due to delayed model launches because of electrical problems and lower sales in North America, its key market.
Third quarter sales in North America plunged by 36 percent by the number of vehicles sold and 42 percent by revenue as the group offered promotional deals as US dealerships struggled to reduce their inventories, with many consumers considering Stellantis vehicles expensive compared to competitors.
The situation improved in the fourth quarter with sales down 28 percent by volume compared to the same period in 2023.
Sales in North America fell by 25 percent by volume in 2024 overall, and 27 percent by revenue.
Sales revenue in Europe, another key market, fell by 11 percent.
The company posted an operating margin of 5.5 percent in 2024, down from 12.8 percent in 2023.
The figure is a key measure of profitability per vehicle, and it fell drastically in the second half of the year as sales volumes fell, it offered rebates and it halted production at some factories, coming in at just 0.3 percent.
Since its creation in 2021 Stellantis had always managed to post double-digit operating margin as Tavares cut costs and trimmed back rebates.
For 2025 Stellantis was vague about the outlook, promising only to boost sales revenue and a single-digit operating margin. It said it expected a real rebound in the second half of the year.
Stellantis has significantly revised its approach since Tavares’s December 1 exit, with the interim CEO giving guarantees to the French and Italian governments on maintaining production and investment in both countries.
It also rolled back plans to cut 1,100 jobs at a US Jeep factory.
The group had 258,000 employees worldwide at the end of 2023.
By AFP
February 26, 2025
Aston Martin. — © AFP/File Jim WATSON
Aston Martin Lagonda announced Wednesday it would cut about five percent of its workforce as weak Chinese demand contributed to losses widening at the luxury car group last year.
The British brand, beloved by fictional British spy James Bond, said it would axe 170 jobs after annual net losses jumped 42 percent to £323.5 million ($409 million).
“Moving forward, my priority is to drive operational excellence and discipline as we continue our transformation into a sustainably profitable company,” new chief executive Adrian Hallmark said in the earnings statement.
Aston Martin, which is slowly transitioning to electric car models, said it hoped for annualised savings of £25 million.
The company said wholesale volumes decreased nine percent to 6,030 cars last year, “impacted by the timing of new model launches, supply chain disruptions and weaker macroeconomic environment in China”.
Aston said that “while China remains a market with significant long-term growth opportunities”, volumes slumped 49 percent last year.
Its overall performance in 2024 reflected also Aston’s car launches.
“Product transformation continued throughout the year as prior models were ramped down in preparation for the launch of the new Vantage, upgraded DBX707 and V12 Vanquish,” it noted.
Hallmark began as chief executive in late 2024, replacing Italian national Amedeo Felisa.
The Briton is the fourth Aston boss in as many years, having stepped down as CEO of German-owned luxury carmaker Bentley.
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