Volkswagen boss backs EU plan to bolster domestic European industry
Oliver Blume says ‘Made in Europe’ rules to counter rapid rise of lower-price Chinese brands ‘must reward real value creation’ The boss of Volkswagen has backed EU proposals to boost its domestic industry, arguing European carmakers need to be able to “compete under comparable conditions” with Chinese rivals. Oliver Blume said “Made in Europe” rules from the EU “must reward real value creation in…
Volkswagen's CEO, Oliver Blume, has expressed support for the European Union's plan to strengthen the domestic automotive industry, arguing that "Made in Europe" rules should prioritize genuine value creation within the region. Speaking in Paris before the annual motor show, Blume emphasized the need for European carmakers to compete under "comparable conditions" with Chinese manufacturers, who have been rapidly gaining market share in Europe and other key manufacturing sectors.
The EU's proposed "Made in Europe" rules, formally known as the Industrial Accelerator Act, aim to limit subsidies and public procurement to products with a significant proportion of their materials and manufacturing derived from within the EU. Blume detailed the various challenges facing European carmakers, including high energy costs, reduced consumer demand due to inflation, the necessity of quicker vehicle development, and intense competition from China.
The EU has recently reached a significant agreement with China to restrict the sales of hybrid vehicles within the bloc, as a precautionary measure to prevent the potential decline of parts of the European car industry. Blume acknowledged that German automakers are prepared to compete with Chinese rivals, but stressed that the EU should ensure businesses with substantial European operations receive a clear advantage.
Blume also highlighted the importance of investing in and developing businesses in Europe, stating that "those who sell here should compete under comparable conditions and create jobs and value here too." Regarding Chinese companies, he added that they should face "comparable conditions" and contribute to job creation and value generation within Europe.
Volkswagen is set to exhibit at the Paris motor show for the first time in 20 years, underscoring the importance of European partnerships, particularly with France. The company has announced plans to cut its global model lineup from 150 to 75, focusing on core brands such as Audi and Škoda, as part of a broader effort to streamline its operations and increase profitability.
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