ACEA

- BELGIUM

At the heart of the national economy

The Belgian car industry has a long history reaching back to the end of the 19th century and has always been one of the main drivers of the national economy. An outward-looking sector, it exports a significant proportion of its production worldwide.

At the end of the 19th century, uniquely Belgian marques such as Minerva, Imperia, FN and Fondu were being snapped up by early motor enthusiasts. By the 1920s foreign manufacturers such as Ford, Citroën, Renault and Chrysler also began to gain a foothold in the Belgian market. These were joined by other big name manufacturers such as Mercedes, Fiat, BMW and Volvo over the ensuing decades.

Car manufacturing over the years: a longstanding international presence in Belgium

- 1922: Ford (Antwerp)
- 1924: Citroën (Vorst)
- 1925: General Motors (Antwerp)
- 1926: Renault (Vilvoorde)
- 1928: Chrysler (Antwerp)
- 1954: Peugeot (Mechelen)
- 1955: Mercedes (Mechelen)
- 1955: Fiat (Waterloo)
- 1958: Standard Triumph (Mechelen)
- 1959: BMW (Kontich)
- 1964: Volvo (Ghent)

An attractive location for car manufacturing

The Belgian car industry remains a pillar of the national economy despite a number of transformations over recent decades inked to developments at EU and international level. With a growth rate of nearly 14%, Belgium was the fastest growing car market in Europe in 2006. Belgian households spend 12% of their annual budget on the acquisition (5%) and use (7%) of private vehicles.

Belgium offers a number of obvious attractions to carmakers. Located at the very heart of the European Union, it provides easy access to all major European sales markets. The country also boasts an excellent infrastructure and logistics network and a well developed network of suppliers and service providers. Owing to its high density of car manufacturers, the Flanders region has been described as “automotive valley”. Every year, the Brussels Motor show, the largest event in Belgium, attracts more than 700,000 visitors, corresponding to 7% of the country’s total population.

A number of major brands have significant manufacturing operations in Belgium. In 2006, the combined output of the 6 major OEM assembly plants totalled 881,929 cars plus 36,127 commercial vehicles (trucks and buses). This places Belgium in a highly competitive position in terms of vehicles produced per capita, and productivity currently stands at 88 vehicles per 1,000 inhabitants. In addition to cars (produced at its four major car plants: Ford Genk, GM Antwerp, Volvo Ghent and Audi Brussels), Belgium also produces trucks, buses and trailers. Manufacturers such as Van Hool, Volvo Europa Truck, Stokota, Atcomex and Jonckheere Bus and Coach are present in a sector that employs over 10,000 workers and helps generate an annual turnover of €2.7bn.

In 2005, automotive import and export activities amounted to respectively €29.3bn and €34.8bn, which translated into a positive import/export balance of €5.5bn. In 2006, 850,000 new vehicles (92.4% of total production) were exported to major markets around the world including the UK (17.4%), Germany (16.7%), Spain (8%), Italy (7.8%), France (6.3%) and the USA (6.1%). In 2005, a grand total of €476m was invested in the car industry, €419m of which was spent by the OEMs.

Leading employer

As a country with long-standing links to car manufacturing, Belgium has a highly qualified and professional workforce. In 2005, employment at the four main Belgian car plants stabilized at 21,000 people.

Toyota is one of Belgium’s biggest employers in the manufacturing sector even though it has no manufacturing plants in the country. Its European coordination centre for R&D, manufacturing equipment, marketing and training academy is located in the Brussels area, and it operates a major import-export car facility covering the entire West European market from the port of Zeebrugge, for a total headcount that goes beyond 1,500 highly skilled employees.

In addition to the manufacturers’ in-house R&D departments, an increasing number of scientific institutes, universities and their spin-offs work at the cutting edge of innovative automotive technology. In total, automotive-related activities provide a living for 385,000 workers and their families. Assembly activity accounts for 30,000 workers, while tier 1 and tier 2 supplies account for 70,000 people. Distribution and aftersales services employ 85,000 people and 200,000 positions are indirectly linked to the automotive industry, involving a total of 385,000 people and representing an impressive 9% of total employment in Belgium.

Suppliers

A grand total of 70,000 people are employed by some 350 suppliers based in Belgium, including Bosal, Johnson Controls, Recticel, Robert Bosch, Tenneco Automotive and Tower Automotive. These companies are active across the full range of services including production, logistics, engineering, R&D, ICT, services, etc. Their ability to adapt rapidly to new supply rules has made Belgian suppliers world leaders in the field.