Nio (NYSE: NIO) has refuted claims that it plans to acquire the Audi car plant in Vorst, Brussels, following speculation that sparked widespread discussion.
William Li, the founder, chairman, and CEO of the Chinese electric vehicle (EV) manufacturer, stated that Nio is not pursuing the Audi facility and is cautious about investing in fixed assets, with the exception of battery swap stations. “How can Nio afford a factory that Audi can’t afford? The rumors are groundless,” Li remarked in a media statement following the launch of the L60, the inaugural model of the new Onvo sub-brand.
The rumors originated from a report by Belgian media outlet De Tijd on September 18, which suggested that Nio was among the potential candidates to take over the Audi Brussels plant. The report also indicated that a Nio delegation had visited the facility recently and was preparing an offer for Volkswagen Group, which must be submitted by next Monday.
Volkswagen, Audi’s parent company, has announced plans to cease production at the Vorst plant after the last Q8 e-tron electric SUV is manufactured next year, leaving the search for a buyer as the only viable option to prevent closure. If the plant shuts down, it would result in the loss of jobs for all 2,910 Audi Brussels employees.
The backdrop for these developments includes rising European import tariffs on Chinese EVs, prompting many Chinese brands, including Nio, to explore local production opportunities. Currently, Nio’s vehicles are available in several European countries, including Norway, Germany, the Netherlands, Sweden, and Denmark, but the company has not yet begun sales in Belgium. The EU has proposed additional tariff increases on EVs from China, with Nio currently facing a total rate of 20.8 percent, compounded by a prior increase of 10 percent.
Related Topics:
