Audi’s decision to close its Brussels plant in February 2025 highlights a broader trend of de-industrialisation across Europe. The closure will impact 4,000 workers, as the company moves production of its Q8 e-tron electric SUV to Mexico, citing declining sales and high costs. This decision follows a series of similar announcements from major carmakers like Stellantis, Michelin, and Volkswagen, which have also been forced to cut jobs and close factories due to weak growth and increasing competition from China.
De-industrialisation, the decline in the proportion of industry in a region’s economy, has been a growing concern in Europe for decades. From 1991 to 2023, industry’s share of Europe’s GDP fell by almost 18%, from 28.8% to 23.7%, largely due to automation, offshoring, and rising global competition.
Basil, an Audi worker of five years, voices the frustration of many employees: “We don’t understand it; we think it’s unjust,” especially when Audi reported nearly 6.3 billion euros in profits in 2023. Despite these challenges, Europe is looking to green technologies as a way forward, with the European Green Deal aiming to promote carbon-neutral industries and secure access to key metals.
However, experts warn that these initiatives will require massive investment, which could disproportionately benefit wealthier EU countries. As China and the US continue to heavily invest in their own industries, Europe faces increasing pressure to catch up while striving to meet its 2050 carbon-neutrality goals.