Audi snubs Belgian MPs as anger grows over possible Brussels plant closure

Audi snubs Belgian MPs as anger grows over possible Brussels plant closure
Credit: Belga

Audi’s management has declined an invitation from Economic and Social Affairs committees in the Chamber to discuss plans for its Brussels plant, harming the debate, according to Denis Ducarme (MR), the new chair of the Social Affairs committee.

Last week, these committees were urgently set up in a plenary session to prepare for discussions and hearings this week. This Wednesday afternoon, Economic and Finance Ministers Pierre-Yves Dermagne (PS) and Vincent Van Peteghem (CD&V) are set to answer MP's questions, along with unions and the technological sector federation Agoria.

However, Audi’s board was notably absent. Minister Dermagne criticised the German management’s silence." Audi AG has never officially responded to the letter of intent," he said, referring to a letter detailing potential initiatives to keep Audi’s industrial operations in Forest, delivered on 6 June.

Only a week ago, the German car manufacturer announced plans to restructure its Belgian plant, which produces the Q8 e-tron. The possibility of halting operations as early as next year is not off the table, threatening nearly 3,000 jobs.

According to Vincent Van Peteghem, local management of Audi Brussels had previously disclosed that no final decision was expected until October. "Yes, we feel misled," Pierre-Yves Dermagne added.

During the Task Force held in April, Prime Minister Alexander De Croo stated that Audi was potentially planning to move its industrial operations closer to its targeted market, the American market, by relocating to Mexico.

The outgoing Minister of Economy confirmed that costs of wages and energy were not mentioned by Audi’s management. Instead, "overproduction and adaption issues" were discussed. Dermagne also emphasised that the plant is profitable.

The production of the Audi e-tron pictured during a celebration of the production of the 8 millionth car at the Audi Brussels plant, in Forest, Brussels, Wednesday 10 November 2021. Credit: Belga

"The letter of intent hasn’t convinced Audi AG. The future governments must continue this task," he concluded, while demonstrating a willingness to collaborate with all involved parties to maintain operations at the site.

Minister Van Peteghem doubted whether Audi Brussels fully benefited from tax support measures, but is pleased that the tax treatment of team work has been clarified "at the eleventh hour".

Ministers and deputies expressed solidarity with the plant’s workers and subcontractors. Outgoing Minister Dermagne pledged to work until the "last second" of his term. The plan is to keep operations on-going at the current location. "We need to be more forceful. Making such an announcement mid-summer is unacceptable," he stated.

Wouter Raskin (N-VA) reminded everyone that the problem of wage costs mustn’t be ignored. Khalil Aouasti (PS) wondered whether the government has been too lenient. He questioned whether motives beyond profit were at play.

Jean-Luc Crucke (Les Engagés) cautioned against a “Mittal Jurisprudence”: substantial public aid for unrealised expectations. Rajae Maouane agreed, finding Audi’s preventative stance difficult to understand.

For François De Smet (DéFI), Audi’s objective is clear: to cease their activities. “Audi’s management is leading us on a wild goose chase. Our industrial strategy needs to be re-evaluated over the long term. Here, efforts aren’t rewarded,” he said.

The conversation also touched on the need to revise the Renault Law, which sets the procedure in case of mass layoffs or redundancies.

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