Volkswagen CEO Oliver Blume calls on EU to shield industry from Chinese rivals amid record layoffs

Blume urges EU action at Paris Motor Show

Volkswagen chief executive Oliver Blume has called on European policymakers to establish the necessary regulatory framework to ensure the German automaker’s sweeping restructuring succeeds.

Addressing an event dubbed "For Europe" on the sidelines of the Paris motor show, Blume asked the European Union to make efforts to shield domestic industry from low-cost Chinese rivals.

Blume framed the turnaround as a collective duty, arguing that while corporations must sharpen their competitive edge and generate attractive business prospects, public officials are equally responsible for laying down viable operating conditions.

"This is a shared responsibility: The business community must become more competitive and create attractive opportunities, while policymakers must establish the right framework conditions," he said.

His views echo those of Ford CEO Jim Farley, who recently said the US must carefully weigh how and whether Chinese automakers should enter the American market and pointed to Europe as a cautionary example.

Biggest restructuring in VW history

The remarks come as Europe’s largest car manufacturer is undergoing the biggest-ever restructuring in its history. Volkswagen is cutting thousands of jobs and considering factory closures to slash costs.

Earlier this year, the company announced a total of 100,000 layoffs; the biggest in the group’s 89-year history. Blume is also grappling with mounting pressure from shareholders to demonstrate that his strategic blueprint extends past cost reduction to substantive advancements in vehicle software and development, amid union pushback against deep head-count reductions and potential closures affecting up to four German manufacturing plants.

Rapid growth of Chinese brands in Europe

The European Union imposed tariffs on Chinese-made fully electric cars two years ago, but Chinese automakers have responded by expanding into combustion-engine models and plug-in hybrids.

Chinese brands reportedly made up for more than 26% of the Western European plug-in hybrid market in the second quarter, up from just 2.2% in the same period two years earlier. A record 20 Chinese car brands are expected at the upcoming Paris Motor Show, underscoring how rapidly China’s automakers have established themselves as a competitive threat in Europe.

Although Volkswagen maintains a roughly 25% share of the European market, rapid inroads made by Chinese brands have rattled industry executives. Blume is among prominent German automotive figures seeking firmer European Union intervention, as broader industry anxiety shifts from the threat of Chinese trade retaliation to the fallout of aggressive overseas discounting spilling directly onto European roads.