Volkswagen's chief executive Oliver Blume has endorsed European Union proposals to shield domestic carmakers from competition with Chinese rivals, arguing that "Made in Europe" rules must benefit businesses that genuinely invest and create value within the bloc.
Speaking in Paris before this week's motor show, Blume said European carmakers need to "compete under comparable conditions" with lower-priced Chinese manufacturers that have disrupted multiple industries. The EU's Industrial Accelerator Act would limit subsidies and public procurement to products with substantial EU-origin materials and manufacturing.
Volkswagen faces acute pressure from Chinese competition. Germany's largest carmaker announced sweeping job cuts of up to 100,000 workers as part of what Blume called the company's "largest transformation programme in its history." The cuts accompany plans to reduce Volkswagen's global model lineup from 150 to 75 across brands including Audi and Škoda, aiming to lower production complexity and per-vehicle costs.
Blume listed mounting challenges for European automakers: high energy costs, weak consumer demand amid inflation, slower development cycles, and intense Chinese competition. On Friday, the EU announced a landmark agreement with China to halve its hybrid car sales in the bloc, citing fears that surging volumes could damage the European automotive industry.
Blume argued that while European companies welcome open competition, the EU should reward businesses with substantial European operations. "Companies that invest and develop in Europe must see a clear benefit," he said. Chinese companies selling in Europe should "compete under comparable conditions and create jobs and value here in Europe, too," he added.
Volkswagen's chief financial officer, Arno Antlitz, said the job cuts were essential to "increase our economic power" by raising profitability and helping the company defend its "home turf." The Paris show marks Volkswagen's first exhibition there in two decades. Blume emphasised Franco-German industrial ties while hosting French Industry Minister Sébastien Martin. Volkswagen separately revealed the production version of its ID Tiguan, an electric SUV variant of its bestselling family model.