German carmaker Audi has announced that it is restructuring its Brussels production site, which could result in the complete closure of operations, putting more than 3,000 Belgian jobs at risk.
Management announced on Tuesday evening at an exceptional works council meeting. It came in the wake of a crisis meeting at Audi's headquarters in Ingolstadt (Bavaria, Germany) where production figures for the first half of 2024 were finalised.
The Brussels Forest site is the only Audi production line in Belgium. It has been manufacturing Audi's flagship electric SUV models – the Audi Q8 e-tron and the Audi Q8 Sportback e-tron – since 2022.
In a statement published on Tuesday, Audi confirmed it is considering ending production in Brussels, citing a "global decline in customer orders in the electric luxury class segment", which affects the e-tron models. The car giant said the Q8 e-tron has been successful for many years but that competition from other luxury electric vehicles has seen a "sharp drop" in incoming orders.
Audi also highlighted "long-standing structural challenges" at the Brussels site, such as the proximity to the city centre which makes it difficult to change the plant layout. Logistical costs are also high. The company said that following an "intense review of the market situation and the general conditions at the Brussels site", it is considering halting production of the Q8 e-tron model series.
It is likely that production of the e-tron models will be moved to Audi's Mexico plant.
The production line of the Audi e-tron at a celebration of the 8 millionth car manufactured at the Audi Brussels plant, November 2021. The site produced its first car in 1949, at the time for the Studebaker brand. The site has operated ever since, though producing different brands. Credit: Belga / Eric Lalmand
'Complete cessation' of operations in Brussels
Management of Audi Brussels says it plans to restructure the site by triggering the "Renualt procedure" – a mandatory consultation period with workers under a Belgian law which was created following the closure of a Renault factory in 1997.
Discussions with unions will consider solutions but the company warned that a complete cessation of operations in Brussels is a potential outcome.
There are currently more than 3,000 employees working at the Brussels site (as of the end of 2023). L'Echo reports that between July and October almost half of this workforce (1,410) could lose their jobs due to the sharp fall in production figures for the Q8 e-tron made in Brussels. The Belgian paper reports that "unions fear the worst" and feel that Audi has ruled out building a replacement model at Forest.
Audi workers pictured before an exceptional works council at the entrance of the Audi Brussels plant, Tuesday 09 July 2024. Credit: Belga / James Arthur Gekiere
With 20,000 to 25,000 cars planned for 2024, this year's production will be less than 50% of last year (53,555 vehicles). By comparison, 230,000 electric vehicles are produced at Volvo in Ghent and over 400,000 cars rolled off the assembly lines at Audi's Ingolstadt plant.
In a press release, CEO of Audi Brussels Volker Germann said that a final decision has not yet been made. He said that "a transparent and constructive dialogue is important in the process that will follow. We will take all perspectives into account."
The Belgian Minister for Economy and Labour Pierre-Yves Dermagne (PS), lamented the news of the restructuring announced by Audi Brussels. As Deputy Prime Minister he assured that staff at the plant will be informed of the ongoing process and that all potential ways to save these jobs will be "seriously examined".
Last June, Prime Minister Alexander De Croo (Open VLD) and Finance Minister Vincent Van Peteghem (CD&V) wrote to the board of Audi Brussels in an attempt to convince the car manufacturer to keep operations in Belgium.
