BERLIN (Reuters) – Volkswagen Group cut its operating profit forecast to 6. 5-7% from 7-7. 5% on Tuesday as it said Audi is considering ending its Brussels site due to weak demand for the high-end electric cars it offers.
Volkswagen Group, Audi’s parent company, said like-to-measure expenses and other unforeseen expenses in the second quarter would have a total impact of up to 2. 6 billion euros ($2. 8 billion) in fiscal 2024.
Demand for Audi’s Q8 e-tron, filed in 2018, had fallen sharply and the automaker was contemplating suspending production altogether.
Brussels is also facing “long-standing structural challenges”, adding difficulties in converting its distribution due to proximity to the city and high logistics costs.
A consultation procedure will now be initiated to find optimal answers for the plant. “This could involve a shutdown if no option is found,” Audi said.
Other unforeseen expenses for the Volkswagen Group are accompanied by foreign exchange losses due to the deconsolidation of Volkswagen Bank Rus in its monetary department and the planned closure of the fuel turbine business of the subsidiary MAN Energy Solutions.
($1 = 0. 9252 euros)
(Reporting by Victoria Waldersee; editing by David Evans)
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