Volkswagen Boss Backs EU Made in Europe Rules to Counter Chinese Rivals

Volkswagen boss Oliver Blume backed European Union proposals for “Made in Europe” rules to counter low-priced Chinese automotive imports. Speaking in Paris ahead of the motor show, Blume argued that European manufacturers need comparable competitive conditions as the German automaker navigates a massive restructuring program.

The Bottom Line

• Volkswagen is executing a massive transformation plan involving up to 100,000 job cuts to increase economic power and protect its domestic European manufacturing base.
• Proposed EU rules under the Industrial Accelerator Act would restrict public subsidies and procurement to goods with high levels of regional material and manufacturing.
• The EU reached a landmark deal with China to halve sales of hybrid vehicles within the bloc to protect local industrial capacity.

Volkswagen Backs Industrial Accelerator Act in Paris

Speaking in Paris prior to the motor show, Volkswagen boss Oliver Blume stated that EU industrial policy must reward genuine regional value creation. The proposed “Made in Europe” regulations, formally referred to as the Industrial Accelerator Act, seek to counter the expanding market footprint of Chinese automotive brands across the continent.

Blume emphasised that companies selling vehicles within the EU should operate under comparable conditions and generate local employment. “Those who sell here should compete under comparable conditions and create jobs and value here in Europe, too,” Blume said.

The regulatory push arrives as European manufacturers face severe cost pressures. Blume highlighted high regional energy prices, subdued consumer demand driven by persistent inflation, and faster product development cycles among overseas competitors as central operational headwinds.

Restructuring Amid Domestic Job Reductions

As Germany’s biggest carmaker, Volkswagen bears significant exposure to these market shifts. The company has initiated a sweeping transformation program aimed at defending its home market against lower-priced imports.

The carmaker plans to reduce its global vehicle model portfolio from 150 to 75 across brands such as Audi and Škoda. This reduction targets factory and dealer complexity to lower unit manufacturing costs.

Arno Antlitz, VW’s chief financial officer, stated that the workforce reductions are essential to build economic power and secure profitability. The company is concurrently streamlining operations while maintaining high-profile product rollouts, including the production version of its all-electric ID Tiguan family SUV.

EU-China Hybrid Vehicle Sales Agreement

The regulatory debate coincides with broader trade interventions by Brussels. The EU confirmed a landmark deal with China designed to halve sales of hybrid cars within the bloc.

Policymakers enacted the measure to prevent rapid sales growth from destabilising traditional European manufacturing ecosystems. While Volkswagen executives reiterated support for open global markets, leadership insisted that regional openness must align with the protection of industrial and technological independence.

Strategic Metric	Previous Operations	Restructured Target
Global Model Portfolio	150 variants	75 variants
Workforce Impact	Baseline staffing	Up to 100,000 job reductions
Key EV Product Line	Standard offerings	Production ID Tiguan rollout

Volkswagen’s exhibition presence at the Paris show—its first in 20 years—underscored Franco-German industrial cooperation, with French industry minister Sébastian Martin hosting discussions on regional manufacturing resilience.

Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.