Volkswagen CEO Oliver Blume said on Thursday that the European Union’s proposed ‘Made in Europe’ rules should reward genuine value creation in the continent, arguing that European carmakers must be able to compete on a level playing field with Chinese rivals. He delivered the remarks in Paris ahead of the Paris Motor Show, where Volkswagen will be on display for the first time in two decades.
The rules, formally known as the Industrial Accelerator Act, would restrict subsidies and public procurement to products that use a substantial proportion of EU‑sourced materials and manufacturing. The proposal is part of a broader effort to counter the rapid rise of Chinese automotive brands in Europe, whose lower‑priced models have put pressure on established manufacturers and sparked a crisis in several sectors.
Volkswagen itself is undergoing a major restructuring, with the company announcing a plan to cut up to 100,000 jobs and halve its global model range from 150 to 75 across brands such as Audi and Škoda. The move aims to simplify production and reduce costs, while the company unveiled the production version of the ID Tiguan, an electric variant of its best‑selling SUV. Blume highlighted the challenges facing European automakers, including high energy costs, inflation‑driven demand weakness, the need for faster development cycles, and intense competition from China.
Blume stressed that while Germany’s carmakers are ready to compete, the EU should reward firms that invest and develop within Europe, ensuring that companies creating jobs and value on the continent receive clear benefits. He added that openness must also protect technological independence, and that Chinese firms selling in Europe should compete under comparable conditions. The EU recently reached a deal with China to halve hybrid‑car sales in the bloc, a move aimed at safeguarding parts of the European industry.
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