Audi announced it would cease production at its Brussels plant by February 28, 2025. This decision, driven by declining sales of electric models and mounting operational costs, underscores a larger economic trend in Europe—deindustrialization. The plant’s closure will directly affect 4,000 employees, a sharp blow to both the workers and the city of Brussels, especially with no immediate buyer found for the facility.
The Emotional Toll on Workers
For Mr. Stavros, a union member with nearly 40 years at the plant, the closure feels like betrayal. “It’s hate because we’re being thrown out,” he says, reflecting the bitterness felt by many long-time employees. Basile, a 30-year-old who has worked on Audi’s production lines for five years, shares the same sentiment, noting that Audi’s €6.3 billion operating profit for 2023 only deepens their confusion. “We think it’s unfair,” he laments, pointing to the disconnect between the company’s financial success and the human cost of these closures.
A Broader Trend of Deindustrialization
Audi’s Brussels shutdown is not an isolated case. The European auto industry is grappling with fierce competition from Chinese models, sluggish growth, and shifting market dynamics. Companies like Stellantis, Michelin, and even Volkswagen have made headlines with production cuts, plant closures, and layoffs. This crisis highlights a longstanding issue in Europe: deindustrialization. According to the World Bank, Europe’s industrial share of GDP has dropped from 28.8% in 1991 to just 23.7% in 2023—a decline of nearly 18%.
The Pressure of Global Competition
Deindustrialization in Europe is driven by multiple factors, including automation, outsourcing to lower-cost countries, and an increasingly service-based economy. Rising energy costs, reduced purchasing power, and fierce competition from economies like China and the United States are also contributing to the pressure on European industries. The European Trade Union Institute forecasts the loss of 853,000 manufacturing jobs in Europe between 2019 and 2023.
Green Technologies and the Race for Industrial Survival
Europe is attempting to address these challenges by focusing on “green” technologies through its “Green Deal for Europe.” This initiative aims to bolster resource independence and encourage carbon-neutral industries. However, experts like Bertrand Candelon, professor at UCLouvain, warn that these ambitious goals require substantial investment, which may be out of reach for smaller countries struggling with strained public finances. Meanwhile, China and the U.S. continue to invest heavily in their own industries, intensifying the global competition.
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