Volkswagen chief backs EU's plan to compete with China
What's the story
Volkswagen boss Oliver Blume has endorsed the European Union's (EU) proposal to bolster its domestic industry. He emphasized that European carmakers should be able to "compete under comparable conditions" with their Chinese counterparts. The endorsement comes during the Paris Motor Show, highlighting Blume's support for the EU's "Made in Europe" rules.
Policy details
Blume emphasizes genuine value creation in Europe
Blume stressed that the EU's "Made in Europe" rules should promote genuine value creation within Europe.
The proposed regulations are designed to tackle the rapid growth of Chinese brands in Europe's automotive sector and other key manufacturing sectors.
These lower-priced Chinese manufacturers have triggered a crisis across several industries, including Volkswagen, which is one of the most impacted European companies.
Corporate changes
Volkswagen's response to Chinese competition
In response to the challenges posed by Chinese competition, Volkswagen has launched a massive plan to cut as many as 100,000 jobs.
Blume described this as "the largest transformation program in its history."
The proposed Industrial Accelerator Act would restrict subsidies and public procurement to products with a significant share of their materials and production originating from within the EU.
Market challenges
Blume highlights Europe's competitive challenges
Blume highlighted the immense competitive pressure on European carmakers, citing high energy costs, reduced demand due to high inflation, the need for faster car development, and fierce competition from China.
He said, "Europe is under enormous competitive pressure."
On Friday, the EU announced a landmark deal with China to "halve" its sales of hybrid cars in the bloc amid fears that surging sales could threaten parts of the European car industry.
Fair play
Fair competition and clear benefits for European businesses
Blume stressed that German carmakers are willing to compete with their Chinese counterparts but want the EU to reward businesses with a strong European presence.
He said, "Companies that invest and develop in Europe must see a clear benefit."
He also called for fair competition, saying, "Those who sell here should compete under comparable conditions and create jobs and value here in Europe, too."