Nio has no plans to take over the Audi plant, and the company is cautious about investing in fixed assets, the EV maker's CEO William Li said.
Nio (NYSE: NIO) denied that it has plans to take over the Audi Brussels car plant in the Brussels city of Vorst, after rumors sparked widespread discussion.
Nio has no plans to take over the Audi plant, and the company is cautious about investing in fixed assets, except for battery swap stations, said William Li, founder, chairman and CEO of the Chinese electric vehicle (EV) maker.
Li said this in a media communication today after last night's launch of the L60, the first model of the sub-brand Onvo.
“How can Nio afford a factory that Audi can't afford? (The rumors) are groundless,” Li said.
On September 18, Belgian media outlet De Tijd cited sources in a report as saying that Nio was among the candidates that are considering to take over the Audi Brussels car plant in Vorst, Brussels.
A delegation from Nio had visited the plant in recent weeks and the company is currently working on an offer that must be submitted to Volkswagen Group by next Monday, De Tijd's report said.
Audi parent Volkswagen has decided not to build any more cars in Vorst when the last Q8 e-tron electric SUV (sport utility vehicle) rolls off the production line next year, so finding a buyer for the plant is the only remaining alternative to the increasingly inevitable closure, the report noted.
If it closes, all 2,910 Audi Brussels employees will lose their jobs, according to the report.
A significant increase in European import tariffs on Chinese EVs means that more and more Chinese brands are starting to look for production options in Europe, the report noted.
In Europe, some of Nio's models are currently available in Norway, Germany, the Netherlands, Sweden, and Denmark, and the company has yet to begin selling vehicles in Belgium.
The EU has already announced proposed tariff increases on EVs from China, with Nio currently facing a 20.8 percent rate, on top of the original 10 percent increase.
Nio mulling takeover of Audi Brussels car plant, report says
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