Volkswagen CEO makes 'China request' to EU after record layoffs

Volkswagen's CEO, Oliver Blume, has urged European policymakers to create regulatory conditions to support the German automaker's extensive restructuring efforts. Speaking at the "For Europe" event during the Paris motor show, Blume urged the EU to protect local industries from competition by Chinese automakers.

Blume emphasized that while companies must improve their competitive position and generate profitable opportunities, governments must also establish suitable operational conditions. He stated that the business community and policymakers share this responsibility.

This sentiment aligns with Ford CEO Jim Farley, who recently cautioned the US about the potential entry of Chinese automakers into the American market. Farley pointed to Europe as an example, suggesting the US should carefully consider how and whether to allow Chinese automakers in.

Volkswagen is currently undergoing its largest restructuring in history, with the company announcing 100,000 job cuts, a record in the company's 89-year history. This comes after the European Union introduced tariffs on Chinese-made fully electric cars, and Chinese automakers have since expanded into combustion-engine models and plug-in hybrids. Chinese brands now account for over 26% of the Western European plug-in hybrid market, a significant increase from just 2.2% just two years ago.

The rapid growth of Chinese car companies in Europe has caused concern among European executives, who see this trend as a threat to the traditional automotive industry. Blume, along with other prominent figures in the German automotive sector, is advocating for stronger intervention from the EU to address this growing challenge.