De Croo launches rescue plan for Audi Brussels plant

De Croo launches rescue plan for Audi Brussels plant
Launching the Q8 e-tron and Q8 Sportback e-tron at the Brussels plant, Wednesday 14 December 2022. Credit: Belga / Dirk Waem

Prime Minister Alexander De Croo will convene with Belgian governments and senior executives from Audi Brussels to finalise a rescue plan for the Audi Forest plant, according to reports from L'Echo and De Tijd.

Fears for the future of the production plant are growing, with the company affected by overcapacity issues and a lack of clarity about what models it will produce from 2027. The taskforce assembled by the Prime Minister will meet next Friday in a bid to set out a plan that can bring security to the valuable site and the approximately 3,000 people working there.

Demand for Audi's Q8 e-tron models has not kept up with supply. As a result of the overproduction, Audi has decided to produce this model in Mexico rather than Belgium from 2027. The German car manufacturer also pulled the plug on making the Q4 e-tron in Belgium.

Key elements under discussion include Belgium offering support for training linked to a new model, subsidies, a reduction in energy bills, and  possible fiscal incentives for companies such as Audi that invest in Belgian sites.

The proud team behind the Q8 e-tron and Q8 Sportback e-tron models. But demand for the cars has been low. Credit: Belga / Dirk Waem

The investment deduction initiative has recently undergone reform, now promising a significant 40% tax break for greener ventures. Though it does not generally apply to the production of electric vehicles, this will likely be revised.

The plans will be put in a letter of intent for Audi's top management to consider. This document is expected to offer the necessary guarantees beyond the election period, even during normal business operations.

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