Audi to Move A1 Production from Belgium to Spain

Volkswagen AG intends to relocate production of the Audi A1 minicar from Brussels to the group's SEAT factory in Martorell, Spain, according to European media reports.

Union sources say a decision isn't likely until the third quarter. The actual production shift may not occur until about 2018, when the current A1 is replaced with an all-new model.

VW notes it is investing €500 million in the Belgian plant. Reports say the facility will gain a new model, perhaps an electric vehicle, when the A1 moves to Spain. The reports indicate the reassignments would reduce costs by using a single facility to handle output of multiple models that share the same platform.

SEAT's Spanish factory currently makes the Audi Q3 small crossover and SEAT Altea small MPV, Ibiza supermini and Leon small hatch.