Agora CEO criticizes Brussels region at Audi hearing

The Auda administration declined the invitation of the economic and social affairs committees to appear in parliament on Wednesday. However, the two lower house committees invited the administration to explain its plans for the Audi plant in Forrest, says the new chairman of the social affairs committee, Denis Ducarme (MR).

“This is very damaging to our discussions,” he replied, adding that the rejection “is not because we did not try hard enough.”

The House committees began work urgently last week after the plenary session, so they could organize discussions and hearings this week.

On Wednesday afternoon, representatives questioned respectively the outgoing Ministers of Economy Pierre-Yves Dermany (PS) and Finance Vincent Van Peteghem (CD&V), the trade unions, and the technological sector union Agora, about the future of the Brussels car factory.

3000 job opportunities

The car manufacturer announced a week ago its intention to restructure the plant in Belgium that produces the Q8 e-tron. Audi wants to stop production of the electric Audi Q8 e-tron early.

As a result, 1,500 jobs are at risk of disappearing in the forests this year, and another 1,100 jobs could be lost in 2025. A complete cessation of activities cannot be ruled out, as nearly 3,000 jobs are at risk.

According to Van Peteghem, the local management of Audi Brussels has indicated that a final decision is not expected before October.

But Audi management finally sent its kitten to the Federal Parliament on Wednesday. Minister Dermani drew attention to this during the debate and denounced the German carmaker’s continued silence. “Audi AG has not yet officially responded to the letter of intent,” he regretted.

This statement provided an overview of the possible ways for Audi to continue its activities on the site in the forest. This statement together with the support measures was already presented to Audi by the government on June 6.

Mexico

According to Dermann, Audi Brussels management indicated during meetings with the task force set up by Prime Minister De Croo (Open VLD) that the German automaker wants to bring production closer to the intended market. That is why production of the electric model will move to Mexico.

When major lockdowns occur in our country, our labor costs are often scrutinized. But according to the Minister of Economy, Audi Brussels management did not cite wage costs as the reason for the restructuring, but mainly “difficulties in making adjustments and overproduction.”

“Obviously there are places around the world where costs are lower, but for the automotive sector in particular, hourly costs are higher in our neighbouring countries than in our own, including Germany,” the SPD member stressed.

“I am not sure that Audi Brussels is fully benefiting from all the (financial) support measures, quite the contrary,” Van Petegem, who is responsible for finance in current affairs, pointed out during the discussion.

“We will do everything we can to maintain maximum employment in Forest. This is also the task of the next government,” the ministers stressed.

“The automotive industry has a future in our country.

Bart Stockers, CEO of Agora, believes that the automotive industry has a future in our country. However, he believes that there has been little political interest in the manufacturing industry in our country for a long time.

Stockers spoke of a “long-term political lack of interest,” which can only be solved with sustained interest. This also “definitely” involves labor costs, as does permit policy. But there are also opportunities in terms of productivity and automation, said Stockers, citing the example of assembly in the United States and China. “It’s a combination of things that determine whether you can succeed or not.”

According to Stoeckers, pressure must now be increased on Audi to find out whether there are still plans to build a factory in Forrest. She added that Plan A, maintaining maximum employment, remains a priority. “But if there is no project, we will have to work immediately on a plan to give the site in Forrest a new industrial future.” Striking: Stoeckers took aim at Brussels. “I don’t think the Brussels region has been the biggest advocate for this industry in Brussels.”

Early retirement

From parliament, Axel Ronse (N-VA) called on the caretaker government not to make any advance decisions on the SWT – the former early retirement pension. The socialist trade union BBTK had called for SWT for employees aged 60 and over on Tuesday. “It would be a great shame to push these people into oblivion,” Ronse said. Nathalie Moyle (CD&V) also believes that SWT is “not a solution”. Ellen Sammen (Vlaams Belang) complained that there has been no industrial policy in our country for years.

Robin Toniau (PVDA) saw how he worked in the same factory in 2006 – then VW Vorst – when the weather was also bad, but later became Audi Brussels. “This modern factory should not be closed in the future,” said Toniau, especially in light of the European plans to phase out combustion engines.

Anja Vanroubais (Voorweg) called on the government to speak more firmly towards Germany, also in the current situation. “After the carrot, it’s time for the stick to preserve employment,” said the Flemish Social Democrat. “There is no more gentleman,” said Mirem Almasi (Ecolo-Green), who questioned how much support had actually flowed to Audi and whether the conditions for recovery had been met. Vincent Van Quickenborne (Open VLD) challenged the Brussels, Flemish and Walloon parliaments. “When will they wake up? They have to decide there whether to restore the training subsidy or not.”

According to the ABVV, Audi Brussels has received €157.7 million in public support since 2018. This has been achieved through lower withholding taxes (€11 to €14 million per year), reduced social security contributions and training credits and subsidies.