The Volkswagen (VW) Group is considering the prospect of shifting production of its A1 B-segment model from Belgium to the SEAT factory in Martorell in Spain, according to an Automotive News Europe (ANE) report. ANE cited comments from the union officials at the Audi plant near Brussels who said that if production of the A1 was moved, then the plant in Belgium would be allocated another Audi model. Jürgen Thysmans, a spokesperson for the Brussels factory, said Audi is investing EUR500 million (USD558 million) in the plant between now and 2019. He added that the facility's 2,500-strong workforce "has every reason to believe the plant has a future."
Significance: It is possible that Audi is looking to move the entry-level A1 to Martorell in order to boost its margins, currently the lowest in the Audi range. It is the only model in the range based on the company's old B-segment PQ25 platform. The next-generation A1 will migrate to the new MQB-A platform which will support the VW Group's B-segment models going forward. Therefore it may make sense to build the A1 alongside the next generation SEAT Ibiza in Martorell, which is a lower-cost production centre than the Brussels plant, while taking advantage of supplier and logistics synergies by building two similar-sized cars there on the same platform. The A1 has been a success, selling consistently in the range of just over 100,000 units per annum since its launch in 2010. Audi built 115,000 at the plant last year and production for 2015 is forecast at 108,000 units according to IHS Automotive.
