BERLIN (Reuters) -Volkswagen Group lowered its forecast for operating returns on Tuesday to 6.5-7% from 7-7.5% as it announced that the Audi brand was considering closing its Brussels site because of low demand for the electric higher-end cars it produces.

Volkswagen Group, Audi's parent company, said that expenses tied to the decision along with other unexpected expenses in the second quarter would have an impact totalling up to 2.6 billion euros ($2.8 billion) in the 2024 financial year.

Demand for Audi's Q8 e-tron, launched in 2018, had dropped sharply and the carmaker was considering ending its production altogether.

The Brussels site also faced "long-standing structural challenges" including difficulty in changing its layout due to proximity to the city and high logistics costs.

A consultation process would now begin to find alternative solutions for the plant. "This may include ceasing operations if no alternative is found," Audi's statement said.

Other unplanned expenses weighing on the Volkswagen Group included exchange rate losses because of the deconsolidation of Volkswagen Bank Rus in its financial services division, and the planned closure of the gas turbine business of subsidiary MAN Energy Solutions.

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