Oliver Blume backs European Union manufacturing rules

Oliver Blume backed European Union proposals for domestic manufacturing rules before the Paris motor show, stating that European carmakers must be able to compete under comparable conditions against Chinese rivals, according to The Guardian. The proposed Industrial Accelerator Act aims to counter the rapid expansion of lower-priced Chinese brands by limiting subsidies and public procurement to products with a substantial share of materials and manufacturing originating within the EU.

Europe Considers Local Value Rules to Counter Import Crisis

The regulatory push responds directly to a broader manufacturing crisis across Europe driven by low-priced vehicle imports. The Guardian reported that the EU-level framework, commonly referred to as Made in Europe rules, would require companies to reward real value creation within the bloc to receive public procurement benefits. Blume stated in Paris that companies that invest and develop in Europe must see a clear benefit, adding that foreign firms selling vehicles inside the bloc should create jobs locally.

Blume emphasized that Volkswagen remains committed to open markets while stressing the necessity of defending local industrial interests. We believe in open markets, but openness also means standing up for our own interests in Europe, Blume said, noting that a strong industrial foundation preserves technological independence. He listed multiple operational headwinds facing European manufacturers, including high energy costs, reduced consumer demand amid high inflation, and intense pricing pressure from Asia.

Volkswagen Slashes Jobs and Models During Major Restructuring

To streamline operations, Volkswagen is reducing its global model count from 150 to 75 across brands such as Audi and Škoda. The reduction aims to eliminate factory and dealer complexity to lower per-vehicle manufacturing costs. Amid the restructuring, the company debuted the production version of its ID Tiguan, an electric edition of its bestselling family sport utility vehicle, during the Paris exhibition.

EU Halves Hybrid Sales While Volkswagen Returns to Paris

The policy environment shifted further when the EU announced a landmark agreement with China to halve hybrid car sales within the bloc, a measure designed to prevent surging imports from displacing European manufacturing operations. Volkswagen participated in the Paris exhibition for the first time in twenty years, using the platform to display vehicles while hosting French industry minister Sébastian Martin to highlight bilateral manufacturing ties.