Audi’s Brussels factory is at risk of closure due to declining demand for electric vehicles and increased competition from China. In response, workers have gone on strike, concerned about potential job cuts. The European Union is contemplating tariffs on Chinese electric vehicles to safeguard domestic manufacturers, though the proposal has encountered opposition. This situation underscores the wider challenges facing Europe’s electric vehicle industry.
Outside Audi’s factory in Brussels, which the German automaker regards as the hub of its electric drive efforts, around 200 workers gathered in the morning rain, protesting near a bonfire. The company is considering shutting down the plant, a move analysts suggest highlights the broader challenges facing Europe’s electric vehicle (EV) industry, including low demand and rising competition from China.
As a subsidiary of Volkswagen, Audi has encountered significant obstacles in its EV production. Earlier in the month, Volkswagen signalled the possibility of closing some production sites in Germany. With 3,000 jobs at risk, the workers in Brussels have launched a long-term strike, planning a major demonstration in the capital and staging walkouts in other locations in solidarity. Some employees have even taken to camping outside the factory, which transitioned from making combustion engine vehicles to EV production in 2018 after 70 years of traditional car manufacturing.
Karim Chawki, a 52-year-old worker, expressed his frustration, saying that the shift to electric has been mishandled. The Brussels plant was supposed to lead innovation, but now workers are bearing the brunt of its struggles.
Europe has been ramping up its EV production as part of its green transition, with an EU deadline to phase out fossil fuel car sales by 2035. However, EV sales have slowed, with registrations across Europe falling by six per cent in July compared to the previous year. This decline has partly been linked to the withdrawal of subsidies, sparking concerns about the industry’s future.
Felipe Munoz, an analyst from Jato Dynamics, pointed out that the potential closure of the Brussels plant is just the first sign of the broader challenges European carmakers face. The influx of cheaper Chinese vehicles, combined with consumer hesitance over the high costs and faster depreciation of EVs, adds to the difficulty. Audi has not officially commented on the plant’s potential closure but previously admitted that demand for the luxury Q8 e-Tron, produced at the Brussels site, has decreased, compounded by high production and logistics costs.
Chawki, an assembly worker with a short, grizzled beard, remarked that European manufacturers are falling behind. He noted that Chinese cars are more advanced while standing with other workers under a union canopy for shelter.
Meanwhile, just a few kilometres away, the European Union is considering imposing import duties of up to 36 per cent on Chinese EVs following an anti-subsidy investigation. The investigation found that Chinese manufacturers were benefiting unfairly from state support. However, some countries, such as Spain and Germany, have voiced concerns about the potential trade impact with China.
A recent report by former European Central Bank chief Mario Draghi endorsed the tariffs, suggesting they could help create a more level playing field. Nonetheless, Draghi emphasized the need for a wider industrial action plan to assist European manufacturers in continuing their path toward decarbonization. Conor McCaffrey, an analyst from the think tank Bruegel, shared similar views, stating that while the tariffs might offer temporary relief, European productivity and competitiveness need substantial improvement.
European Commission President Ursula von der Leyen has pledged a new “Clean Industrial Deal” to stimulate investment in infrastructure and industry within the first 100 days of her administration. However, this plan may come too late for Audi’s Brussels workers, who are facing the possibility of losing their jobs. Bernard Clerfayt, Brussels’ minister for employment, acknowledged their anger, noting that it is justified, especially as Audi has yet to clarify its intentions.
Despite having received around €27 million in public funding to support its transition to EV production, Audi’s future in Brussels remains uncertain. Belgian unions have called for a nationwide strike on Monday in protest of potential job losses as rumours of a possible foreign buyer circulate. Regis Lauwereyns, a 32-year-old father, expressed his fears, saying they feel abandoned and are being left in the dark about the company’s plans.
