Richard Parks Audi’s announcement to close its Brussels plant in February 2025 underscores a larger issue plaguing Europe: de-industrialisation. The closure will affect 4,000 workers, as production of the Q8 e-tron electric SUV shifts to Mexico, citing reduced sales and high operational costs. This move is part of a growing trend across Europe, with carmakers like Stellantis, Michelin, and Volkswagen also scaling back production due to sluggish growth and increasing competition from China.
The decline of industrial activity in Europe is evident. Over the past three decades, the share of industry in Europe’s GDP has dropped from 28.8% in 1991 to 23.7% in 2023. Key factors behind this include automation, offshoring to lower-cost countries, and intensified global competition.
For many workers, including Basil, an Audi employee of five years, the closure is a painful blow. “We don’t understand it; we think it’s unjust,” he says, especially as Audi reported nearly 6.3 billion euros in profits in 2023.
In response, Europe is turning to green technologies to revive its industrial base. The European Green Deal aims to support carbon-neutral industries and secure access to essential materials. However, experts warn that achieving these goals requires significant investment, which may favor wealthier countries within the EU. As China and the US continue to expand their industrial capabilities, Europe faces increasing pressure to catch up while working toward its 2050 carbon-neutrality target.