Volkswagen Group CEO Oliver Blume stated that European automakers are facing significant challenges due to increased competition from Chinese manufacturers and shifting market dynamics. He noted that Volkswagen, Stellantis, and Renault account for over 60% of total vehicle production in Europe, yet these companies are struggling with rising operational costs and the need to maintain profitability.
Blume is currently advocating for a major restructuring plan aimed at securing the company's industrial base in Europe. This initiative, which includes potential factory closures and the reduction of tens of thousands of jobs, has encountered strong opposition from labor unions. The CEO emphasized that the group must ensure its European operations remain competitive and resilient against external risks.
The European automotive sector is also navigating a rapid shift in consumer demand toward electric vehicles, driven by rising fuel costs and the availability of more affordable models. During the Paris Motor Show, Volkswagen, Stellantis, and Renault showcased new electric vehicle lineups. Simultaneously, a record number of Chinese brands participated in the event, signaling their intent to expand their footprint in the European market.
Blume highlighted that the business model of relying on high-volume, low-margin mass-market vehicles is under severe strain. To address these systemic issues, he has called on European policymakers to implement more flexible regulatory frameworks and introduce incentive programs to support domestic production. These measures are intended to help local manufacturers compete more effectively against low-cost imports.
