Belgium is a car country. During the economic boom of the post-war period known as "les trentes glorieuses" nowhere in the world produced as many cars per capita as this pocket of Europe – much of it on the D'Ieteren site in Forest, Brussels.
Over eight million cars have rolled out of this cornerstone of Belgian manufacturing. From Studebakers to VW Beetles, many of the most iconic vehicles to grace Europe's roads started life in Brussels. In 2016 the plant was the first in Europe to make electric cars, producing Audi Q8 e-tron models. This came with significant investment: an estimated one million hours of training was paid for by the Belgian State to reskill the workforce for electric vehicles.
But today the future of the plant hangs in the balance, as tensions simmer between management and the 3,000 staff that work there. Audi announced this summer that it will "restructure" its operations in Brussels, with the intention of relocating Q8 production to Mexico. Fears that jobs are on the line weren't assuaged when two weeks ago Audi held a meeting with staff in a concert hall rather than at the factory, accompanied by security searches and barricades.
And although the German brand has not said it will close the Forest site, concerns were piqued on Tuesday as it confirmed that no new model will be assigned to its Belgian factory. The lack of clarity has staff braced for bad news: an estimated 1,500 jobs lost this year followed by 1,100 at the start of 2025. Add to this around 1,000 subcontractors and the blow to Belgium's industrial heritage would be severe.
Commentators point out that Europe has long been losing its grip on the manufacturing base that paved the way to prosperity in the 20th century. In a global context, Belgium lacks competitiveness. Salaries are relatively high – protected by wage indexation – and unions are strong. And the EU economy is relatively open, with few protectionist measures to safeguard its heavy industries. Instead, Europe has been content to focus on services and enjoy cheaper material goods from Asia.
Audi's slow withdrawal from Belgium will allow it to focus resources on its homeland Germany. Meanwhile, there have been unconfirmed reports that Chinese car brands are eyeing up the Forest site – potentially offering a lifeline to those working in Forest. As the EU has confirmed substantial tariffs on electric vehicles imported from China, could Brussels become a foothold for more competitively priced EVs in the European market?
At present uncertainty abounds. If the Forest plant closes entirely, only Volvo's factory in Ghent will stand between Belgium losing its car building heritage altogether.
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