Business & Finance

Volkswagen CEO Supports EU ‘Made in Europe’ Initiative to Level Playing Field with China

By Jasper Jolly

Volkswagen chief Oliver Blume endorsed European Union proposals to strengthen domestic industry, saying European carmakers must be able to compete on equal footing with Chinese rivals. Speaking in Paris before the motor show, Blume urged that EU “Made in Europe” rules should reward genuine value creation within the continent. The rules, part of the Industrial Accelerator Act, would restrict subsidies and public procurement to products largely sourced and manufactured inside the EU. Blume highlighted the intense competitive pressure on Europe, citing high energy costs, reduced consumer demand amid inflation, the need for faster vehicle development, and fierce competition from China. He noted that German automakers are prepared to compete but want the EU to reward businesses with substantial European footprints. Blume added that companies investing and developing in Europe should see clear benefits and that Chinese firms selling in the bloc should compete under comparable conditions, creating jobs and value locally. He emphasized the importance of a strong industrial base for technological independence. Volkswagen is exhibiting at the Paris show for the first time in 20 years, with Blume stressing close France‑Germany ties and hosting French industry minister Sébastian Martin. VW’s chief financial officer Arno Antlitz said the company’s planned job cuts—up to 100,000 positions—are necessary to increase profitability and defend its home market. The automaker will cut its global model lineup from 150 to 75 across brands such as Audi and Škoda to reduce complexity and lower vehicle costs. On Sunday, VW unveiled the production version of its ID Tiguan, an electric variant of its best‑selling family SUV.