Oliver Blume, the chief executive of Volkswagen, has expressed support for EU proposals designed to strengthen its domestic industry. Speaking in Paris ahead of this week's motor show, Mr Blume stated that European carmakers need to compete under comparable conditions with Chinese rivals.
The proposed "Made in Europe" rules, officially called the Industrial Accelerator Act, aim to counter the rapid growth of Chinese brands in the automotive and other manufacturing sectors. These rules would limit subsidies and public procurement to products that have a large proportion of their materials and manufacturing originating within the EU.
Volkswagen, which is among the European companies most affected by the competition, has initiated a plan to cut up to 100,000 jobs. Mr Blume described this as the "largest transformation programme in its history." The company is also reducing its global model offerings from 150 to 75 across brands like Audi and Škoda, intending to lower production costs and complexity.
Mr Blume highlighted several challenges for European carmakers, including high energy costs, reduced consumer demand due to inflation, and the need for faster car development. He emphasised that companies investing and developing in Europe should see a clear benefit, and those selling in Europe should compete under comparable conditions, creating jobs and value within the continent.