The chief executive of Volkswagen expressed support for European Union initiatives designed to strengthen the continent’s industrial competitiveness, particularly in response to growing market share held by Chinese automotive manufacturers. Speaking at the Paris motor show, he emphasized that European carmakers require the ability to “compete under comparable conditions” with Chinese rivals and that EU regulations should reward substantial value creation within Europe.
The proposed Industrial Accelerator Act would establish “Made in Europe” rules that would restrict subsidies and public procurement to products containing significant proportions of EU-sourced materials and manufacturing. The initiative addresses concerns about lower-priced Chinese brands disrupting multiple manufacturing sectors across Europe. Volkswagen, Germany’s largest automaker, has been among the most affected companies and announced an extensive restructuring plan involving potential job reductions of up to 100,000 positions, which leadership characterized as the company’s largest transformation program in its history.
The executive outlined multiple pressures facing European automotive manufacturers, including elevated energy expenses, reduced consumer demand linked to inflationary pressures, requirements for faster vehicle development cycles, and heightened competition from Chinese producers. He stated that while German carmakers welcomed competition with Chinese rivals, the EU should prioritize supporting companies with substantial European operations and investment commitments. He argued that businesses investing and developing vehicles in Europe should receive clear incentives and that foreign competitors selling in the region should similarly establish jobs and value creation there.
The company simultaneously announced a restructuring of its product lineup, reducing offerings from 150 to 75 models globally across its various brands, aiming to decrease factory complexity and lower manufacturing costs per vehicle. On the same occasion, Volkswagen unveiled the production version of its ID Tiguan, an electric variant of one of its highest-selling family SUV models. The appearance marked Volkswagen’s first participation in the Paris motor show in 20 years.
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