Oliver Blume, the CEO of Volkswagen, has expressed support for the European Union's proposals aimed at strengthening its domestic industry. He emphasized the need for European carmakers to compete on equal footing with their Chinese counterparts, stating that the proposed "Made in Europe" rules must prioritize genuine value creation within the continent.
Context
Speaking in Paris ahead of this week's motor show, Blume highlighted the urgency of these measures in light of the rapid rise of lower-priced Chinese brands in the automotive sector and other critical manufacturing industries. The influx of affordable Chinese manufacturers has triggered a crisis across several sectors, with Volkswagen being one of the most affected European companies. In response, the company has initiated a drastic plan to cut up to 100,000 jobs, marking what Blume described as the "largest transformation programme in its history."
Developments
The proposed Industrial Accelerator Act, which encompasses the Made in Europe rules, aims to restrict subsidies and public procurement to products that are primarily manufactured and sourced within the EU. Blume outlined several challenges facing European carmakers, including:
