In a strategic move to bolster its European presence, Chinese electric vehicle (EV) manufacturer Nio is reportedly eyeing a takeover of Audi’s car plant in Vorst, Belgium. A delegation from Nio recently visited the facility and is currently working on a bid to submit to Audi’s parent company, Volkswagen, by next Monday, according to Belgian newspaper De Tijd.
This move comes as Volkswagen has decided to cease vehicle production at the Vorst plant after the last Q8 e-tron SUV rolls off the assembly line next year. The potential closure of the plant, which employs 2,910 workers, has sparked a scramble for a buyer.
Besides Nio, Belgium-based D’Ieteren is also expressing interest in acquiring the plant.
For Nio, securing the Vorst plant would offer several advantages. Firstly, it would enable the company to avoid the hefty tariffs being contemplated for EV imports from China. The European Commission is expected to propose final tariffs of up to 35.3% on EVs manufactured in China, in addition to the standard 10% car import duty applied by the EU.
Secondly, a local manufacturing presence would significantly strengthen Nio’s position in the European market. The Chinese EV maker commenced deliveries of its ES8 SUV to European customers earlier this month. Notably, the vehicle is marketed as the EL8 in Europe due to a previous lawsuit with Audi.
The potential acquisition of the Vorst plant signifies Nio’s commitment to establishing a robust foothold in Europe. By establishing a local manufacturing base, Nio could gain a competitive edge by mitigating import tariffs and bolstering its European presence. This strategic move could position the company for continued growth in the region’s burgeoning EV market.
