Audi latest automaker to shift EV production over sales shift

The German marque may halt construction of its electric Q8 e-tron, and it’s not the only one reconsidering the powertrain

  • Audi wants to stop building its Q8 e-tron, citing slow sales and difficulty in updating the factory where it’s built
  • The automaker said there is a “global decline” in orders for luxury EVs, and that the model just isn’t in-demand
  • Other automakers are reassessing their electrification plans, as well, scaling back production promises

The plant itself also presents issues, as it’s located close to the city centre. That makes it difficult to update the plant and adds to the logistics costs of servicing it. Exactly when the last Q8 will roll out is hasn’t been determined.

New Brunswick is just one of “multiple locations” under consideration globally for the plant, but federal records show that the Canadian feds have been approached by Ionway about government policies that could help with the decision.

But while Audi wants to retire the Q8 e-tron, it isn’t the only auto manufacturer that’s pulling back from an initial rush into electrified vehicles (EVs). Some others are also pulling back and slowing down their plug-in plans, either locally on or a global basis.

Ford: Delays for new EVs in Oakville, Ontario

The Ford Motor Company of Canada Limited assembly plant in Oakville, Ontario, in 2018
The Ford Motor Company of Canada Limited assembly plant in Oakville, Ontario, in 2018Photo by Peter J. Thompson /Postmedia

General Motors: No word when its Ontario plant will start making EV components

A worker assembles a V8 engine at General Motors' St. Catharines, Ontario plant
A worker assembles a V8 engine at General Motors’ St. Catharines, Ontario plantPhoto by General Motors

According to the union that represents the workers, the automaker “verbally relayed news of a delay in the (EV) project through group leaders,” without any details. A union official said that was unusual, as official announcements are always sent in writing on company letterhead.

In 2020, GM invited Driving.ca to a sneak preview of its upcoming all-electric lineup, showing off its new Ultium EV platform and a promise of ten new vehicles built on it. During the event, CEO Mary Barra said the company’s goal was to sell one million EVs per year by 2025. It sold some 2.6 million vehicles in the U.S. alone in 2023, but of those, only 75,386 were entirely electric.

Mercedes-Benz: Internal-combustion “well into the 2030s”

2024 Mercedes-Benz EQB 350 4MATIC
2024 Mercedes-Benz EQB 350 4MATICPhoto by Mercedes-Benz

But in its annual report, released in February 2024, the automaker said that while it “is taking the necessary steps to go all electric,” that “customers and market conditions will set the pace of the transformation.” Instead of EV-only by the end of the decade, Mercedes-Benz said it “plans to be in a position to cater to different customer needs, whether it’s an all-electric drivetrain or an electrified combustion engine, until well into the 2030s.” That will include hybrids and PHEVs, but they’ll still need gas in their tanks.

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