VW lowers 2024 returns forecast to 6.57 on unplanned expenses
Analysts welcome efforts to lower costs, reduce capacity
Audi39;s Q8 etron demand down as brand teases newer models

BERLIN, July 10 Reuters Volkswagen shares fell more than 2 early on Wednesday after it issued an overnight profit warning triggered in part by the possible closure of an Audi plant.

The company lowered its 2024 operating return on sales forecast to 6.57 from 77.5 and said the Audi brand was considering closing its Brussels site, which employs about 3,000 people, due to low demand for its higherend electric cars.

Finding an alternative use for the plant or closing it, as well as other expenses, would cost up to 2.6 billion euros 2.8 billion this financial year, Volkswagen announced.

A consultation process is now ongoing on finding alternative solutions for the site, it said.

MEXICO MOVE

The future of Audi39;s Brussels plant was thrown into question earlier this year after the carmaker said the followon model to the Q8 etron would be built in Mexico.

Rising orders for newer models such as the Q6 etron coming to market this year had led to a sharp drop in interest in the older Q8 etron produced in Brussels, Audi said on Tuesday.

Audi has struggled to catch up with premium carmaker competitors BMW and Mercedes in the transition to electric vehicles.

Products like the first generation Q8 etron were halfway solutions not the full clean sheet like Audi has done with its new premium electric…