According to media reports, on February 28, Audi's factory in Brussels, Belgium, permanently ceased operations, marking the latest sign of turmoil in the European automotive industry.
After producing internal combustion engine vehicles for 70 years, the factory transitioned to electric vehicle production in 2018 and was regarded as the "cradle" of Audi's electric vehicles. Additionally, the plant was the largest private employer in the Belgian capital, and its closure will result in 3,000 job losses.
However, in the months following the shutdown, hundreds of employees will remain at the plant to oversee equipment clearance, dismantling, and administrative wrap-up. In recent days, dozens of workers have been seen entering and exiting the factory, emptying their lockers and bidding farewell.
"This job was fulfilling; it's a shame that it has to end," said Florin Tautu, an engineer who moved from Romania in 2011 to help revamp the plant's infrastructure for new production needs.
Another manager expressed optimism about the future but sympathized with employees still paying mortgages or supporting children in college.
In response, Audi's management stated that a dedicated team has been established at local employment centers to assist workers in finding new jobs. A job fair offering around 4,000 positions is scheduled for April.
Audi, a subsidiary of German automotive giant Volkswagen, cited several reasons for shutting down the Brussels plant. The company pointed to a global decline in demand for premium electric SUVs, leading to a sharp drop in orders for the Audi Q8 e-tron, the electric SUV produced at the factory. Additionally, Audi mentioned the factory's long-standing structural issues, including high logistics and production costs.
Before the closure, factory workers had staged prolonged strikes in an attempt to prevent the shutdown. Some critics blamed Audi for being too slow in transitioning to electrification and then focusing on an overly expensive EV model. "People are being pushed to buy electric cars, but the infrastructure is not ready," said Jan Baetens, a member of the CSC union.
From an industry policy perspective, the EU has set a target to phase out sales of new internal combustion engine cars by 2035 and aims for EVs to account for one-quarter of new car registrations by 2025. However, in January of this year, that share stood at only 15%.
European EV sales have struggled due to consumer reluctance over electric vehicles' high upfront costs.
Sigrid de Vries, Director General of the European Automobile Manufacturers Association (ACEA), commented, "Achieving a 15% market share for EVs in less than five years is impressive, but it's not enough. We have the models ready for the market, but we are facing stagnating demand."
Furthermore, in terms of EV innovation, a recent report by credit insurer Allianz Trade warned that European car manufacturers have been overtaken by U.S. EV giant Tesla and Chinese competitors such as BYD and Geely, resulting in excessively high car prices in Europe.
Last year, Audi delivered over 164,000 electric vehicles globally, an 8% decline from the previous year. In China, Audi's deliveries dropped by 11%.
