Volkswagen CEO Oliver Blume has supported EU proposals aimed at strengthening the bloc’s automotive industry, stating that European car manufacturers must be able to compete on equal terms with their Chinese counterparts. Speaking in Paris ahead of this week’s motor show, Blume highlighted the need for “Made in Europe” regulations that would ensure genuine value is created within Europe.
These new rules, known as the Industrial Accelerator Act, are designed to combat the increasing presence of affordable Chinese brands in Europe, which have contributed to difficulties in various sectors, including the automotive industry. Volkswagen, as Germany’s largest carmaker, is feeling the impact and has announced plans to lay off up to 100,000 employees as part of a significant transformation strategy.
Blume pointed out various challenges for European carmakers, such as high energy costs, rising inflation affecting consumer demand, the necessity for quicker vehicle development, and fierce competition from China. Recently, the EU secured an agreement with China to reduce hybrid car sales in Europe, amid concerns that soaring sales could destabilise the European car market.
Blume emphasised that companies investing in Europe should see tangible benefits, insisting that those operating in Europe should also create jobs and generate value on the continent.
This year marked Volkswagen’s return to the Paris show after two decades, where Blume noted the strong ties between France and Germany. Meanwhile, VW’s Chief Financial Officer, Arno Antlitz, stressed the need for job cuts to enhance profitability and defend the company’s interests. The firm is also reducing its global model offerings from 150 to 75, across brands including Audi and Škoda, to streamline operations and reduce costs. On Sunday, the company showcased the production version of its ID Tiguan, an electric variant of its top-selling SUV.
