De Croo woos Audi to keep operations on Belgian soil

De Croo woos Audi to keep operations on Belgian soil
L-R: Finance Minister Vincent Van Peteghem (CD&V), Prime Minister Alexander De Croo (Open VLD) and Audi Brussels CEO Volker Germann pictured at the Volkswagen AG Group office in Brussels, Thursday 6 June 2024. Credit: Belga / Benoit Doppagne

Prime Minister Alexander De Croo (Open VLD) and Finance Minister Vincent Van Peteghem (CD&V) presented a letter of intent to the board of Audi Brussels amid doubts about the future of the company's factory in Forest.

All Belgian governments are determined to convince the German car manufacturer to keep its operations in Belgium.

"We would like to thank the Prime Minister and the various governments for this letter of intention," factory spokesperson Peter D'hoore told Belga News Agency, adding that the contents of the letter will be reviewed and considered.

Audi's assembly plant in Forest has until recently manufactured the electric SUV Q8 e-tron, but the company will cease this production line from 2027 onwards, potentially moving operations to Mexico. This would cost Belgium 3,000 jobs and has prompted the government to promise flexible benefits to Audi if it were to stick around.

An Q8 e-tron built at the Forest factory in Brussels. Credit: Belga / Dirk Waem

Proposed measures were put together by a working group (under De Croo's tutelage) made up of representatives from different governments and the factory management to find a solution ahead of upcoming elections.

As it stands, "there are no guarantees from the car manufacturer," according to the Prime Minister. Van Peteghem echoed this uncertainty, stating that "it is difficult to see which measures will be implemented today" as the carmaker has not committed to anything yet.

De Croo referred back to the government's past success in holding onto Volvo's factory in Ghent as a model to emulate. "Volvo faced doubts ten years ago. Today, they manufacture for the entire world." He also dismissed suggestions that this latest move equated to electioneering ahead of Sunday's ballot. "We are here on invitation. Our actions are not determined by electoral deadlines."

What's in it for Audi?

The letter of intent, seen by l'Echo, sets out various measures which Audi could benefit from, such as tax deductions for investment in the production of electric or other sustainable models. This proposal entails pre-existing deductions as well as a specifically tailored plan. The government is also offering employee training support and funding for research and development.

Audi wishes to avail of railway infrastructure during daytime hours (freight is currently only in operation at nighttime) and has requested that its morning shift staff are given the option to travel to work via train. The letter of intent indicates that railway operator Infrabel is open to these demands.

The Brussels-Capital Region has also promised Audi that it will do its best ensure that the legal process of obtaining a wind turbine goes as smoothly as possible for the company. The region is looking into bringing Audi's suppliers closer to the Forest site and has ensured that its temporary unemployment scheme will remain available in the future among a raft of other measures exclusively for Audi's benefit.

"When you love something, you don't want to let it go," the letter of intent states.

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