Volkswagen CEO Oliver Blume appealed for European policymakers to create a supportive framework for the automaker's historic transformation, emphasizing a shared responsibility between industry competitiveness and favorable regulatory conditions. He spoke amid increasing pressure from low-cost Chinese electric vehicle competitors in the European market.
Volkswagen's appeal highlights the intense competition European automakers face from Chinese rivals, potentially impacting profitability and investment in the region's automotive sector. The outcome of policy decisions regarding trade and local content rules will shape the future competitiveness of European car manufacturers.
Volkswagen CEO Oliver Blume stated that European policymakers need to establish the right framework conditions to support the German automaker's significant restructuring efforts. Speaking at an event in Paris, Blume described the ongoing transformation as the company's largest in history and emphasized that both industry and policymakers share responsibility for its success.
Blume's remarks come as Volkswagen and other European carmakers face increasing pressure from Chinese competitors, who are aggressively expanding into the European market with affordable electric vehicles amidst an EV price war and declining sales in their home market. Volkswagen is battling to implement job cuts and improve product development and software capabilities.
Blume has previously advocated for a more protectionist stance from the European Union regarding Chinese imports. He called a recent EU-China deal that could significantly reduce Chinese plug-in hybrid vehicle imports an "important step" toward leveling the playing field. Gregor Williams, an analyst at Rhodium Group, noted that the downturn in China's domestic auto market is creating export pressure, potentially making the European market "very unprofitable" if the price war extends there.
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