Volkswagen chief Oliver Blume expects European policymakers to create the framework needed to make the German automaker’s restructuring a success, he said on Sunday, amid a push by Brussels to defend industry from low-cost Chinese rivals.
At an occasion titled “For Europe” on the eve of the Paris motor show, Blume said Volkswagen was working to scale back complexity across the company, whose manufacturers vary from mass-market VW to high-end marques like Porsche and Lamborghini, in what he called “the biggest transformation program in our history.”
“This is a shared responsibility: The business community must become more competitive and create attractive opportunities, while policymakers must establish the right framework conditions,” he said.
Volkswagen CEO Oliver Blume is backing “Made in Europe” guidelines to incentivize native manufacturing. dpa/image alliance via Getty Images
The auto show in Paris comes at a essential juncture for Europe’s prime carmaker, which is present process a main restructuring and is racing to replace its mass-market electric vehicle offering as Chinese rivals quickly gain ground in Europe.
Battered by an EV price conflict and falling gross sales at home, Chinese automakers are aggressively increasing into Europe.
In his speech, Blume backed proposed “Made in Europe” guidelines to incentivize native manufacturing, and welcomed a deal between the EU and China that could cut Chinese imports of plug-in hybrid automobiles to the bloc by more than half.
“Those who sell here should compete under comparable conditions and create jobs and value here in Europe too,” Blume said at the occasion, attended by France’s minister for industry Sebastien Martin.
Battling to implement sweeping job cuts and threatening to close up to 4 plants in Germany, Blume also faces strain from buyers to show his turnaround strategy goes beyond downsizing to make strides in product development and software program.
A collection of inexpensive EVs across Volkswagen’s quantity manufacturers, including VW, Spain’s Cupra and the Czech Republic’s Skoda, will be on show at the occasion.
Volkswagen is Europe’s top-selling carmaker, with a constant market share of roughly a quarter over the last decade, AFP via Getty Images
Volkswagen will also premiere its new ID. Tiguan electric SUV.
Volkswagen is by far Europe’s top-selling automaker, with a constant market share of roughly a quarter over the last decade, even as Chinese entrants like BYD and Leapmotor construct a following.
Still, Volkswagen is feeling the heat. Its CEO is among German auto industry leaders calling for a more protectionist EU stance, as fears of retaliation from Beijing give means to worries that brutal competitors in China has unfold to Europe.
Gregor Williams, an analyst at Rhodium Group, said: “Industry has become a lot more concerned about the competitive challenge arising in China.”
The downturn in China’s home auto market is creating export strain, Williams said.
“It’s one thing to lose revenues,” he added. “But if China also manages to export the price war, the European market could become very unprofitable.”
