Oliver Blume, chief executive of Volkswagen, endorsed the European Union’s “Made in Europe” rules at the Paris motor show, arguing that European automakers must be able to compete on an equal footing with Chinese rivals. He said the new regulations must reward genuine value creation within the EU.
The EU’s Industrial Accelerator Act seeks to curb subsidies and public procurement for products that rely heavily on non‑European materials and manufacturing. It comes amid a rapid rise of Chinese automotive brands that have disrupted several European industries with lower‑priced models. The EU also reached a deal with China to cut hybrid car sales in the bloc by half, a move aimed at protecting the European sector from a potential surge in imports.
Volkswagen, Germany’s largest carmaker, is one of the firms most affected by the competition. The company has announced a drastic restructuring that will cut up to 100,000 jobs and reduce its global model range from 150 to 75 across brands such as Audi and Škoda. Chief financial officer Arno Antlitz said the cuts are necessary to boost profitability and defend the company’s “home turf.”
Blume highlighted the challenges facing European carmakers, including high energy costs, reduced demand amid inflation, the need for faster development cycles, and intense pressure from China. He stressed that while open markets are valued, protecting European interests is essential for maintaining technological independence.
Volkswagen’s return to the Paris show after 20 years underscored the close ties between France and Germany. Blume hosted French industry minister Sébastien Martin, and the company unveiled the production version of the ID Tiguan, an electric edition of its bestselling family SUV, on Sunday.
.png?trim=0,0,0,0&width=1200&height=800&crop=1200:800)
