The German automaker’s facility in Brussels is at risk of shutting down amid stiff competition from China and the US
Thousands of demonstrators took to the streets of Brussels on Monday in support of autoworkers who stand to lose their jobs if the Audi plant in the Belgian capital shuts its doors.
Around 5,500 gathered at Brussels-North train station and marched toward the European Parliament, AP reported, citing local police. The lion’s share of Audi’s 3,000 employees in the city, 90% of whom are expected to be laid off as early as next year, were reportedly leading the rally, according to Bloomberg.
The protest came two months after the German automaker announced that demand for its high-end Q8 e-tron, which is assembled in Brussels, had dramatically declined, and warned that the local manufacturing facility suffers from high logistical and production costs.
Earlier this month, Audi Brussels’ spokesman, Peter D’Hoore, said that the plant may not necessarily shut down, adding that the production site could be used to make parts for the company’s other factories.
According to AP, many of the professionals employed at the Brussels plant are engaged in electronic vehicle production, which is being actively touted by the EU as a breakthrough sector amid rising competition with China and the US.
Earlier this month, Volkswagen, Germany’s biggest employer in the auto manufacturing sector, ended its job guarantees and announced that it planned to close plants and roll out mass layoffs in the country for the first time in the company’s history. Commenting on the move, CEO Oliver Blume said that the major challenges facing the EU auto industry stem from the pandemic four years ago and Asian competitors entering the market.
The industrial sector, the backbone of the German economy, including its automotive sector, has been struggling over the past five years from self-imposed budgetary restrictions that ban stimulus politics, and the country’s refusal to import cheap Russian energy. The competitiveness of German producers has been undermined by higher energy prices after Berlin lost access to inexpensive gas supplies from Russia.
