Business · Trade · 4 hrs ago
Volkswagen chief backs EU plan to support European industry
Volkswagen chief executive Oliver Blume has backed a proposed EU plan to support industries that make more of their products in Europe.
The proposal, called the Industrial Accelerator Act, would limit subsidies and public contracts to products with a large share of materials and manufacturing from within the EU.
Blume says companies that invest and develop in Europe should benefit, and that firms selling there should also create jobs and value locally.
The plan comes as European carmakers face competition from lower-priced Chinese brands, high energy costs and weaker consumer demand.
Volkswagen is also cutting as many as 100,000 jobs and reducing the number of models it sells worldwide from 150 to 75.
Blume says Europe needs a strong industrial base to protect its technological independence.
The EU proposal is intended to strengthen domestic industry, but no further steps or timetable are stated.
Volkswagen chief executive Oliver Blume backed EU proposals to support European industry, saying carmakers need fair conditions to compete with Chinese rivals.
The proposed “Made in Europe” rules would link subsidies and public procurement to products with substantial EU-based materials and manufacturing.
Blume said the rules should reward companies that invest, develop and create jobs in Europe.
He cited high energy costs, weaker consumer demand, slow development and competition from China as pressures on European carmakers.
Volkswagen is cutting jobs and reducing the number of models it offers worldwide from 150 to 75.
- Who
- Volkswagen chief executive Oliver Blume backed the proposals.
- What
- He supported EU rules intended to boost European industry and said carmakers need comparable conditions to compete with Chinese rivals.
- When
- He spoke before the motor show that week. The article was published on 11 October 2026.
- Where
- Paris.
- Why
- Blume said European carmakers face pressure from high energy costs, lower demand, the need to develop cars faster and competition from China.
This story does not have two clearly opposing sides.
Europe is under enormous competitive pressure.
Companies that invest and develop in Europe must see a clear benefit.
Those who sell here should compete under comparable conditions and create jobs and value here in Europe, too.
We believe in open markets, but openness also means standing up for our own interests in Europe.
The EU said it had reached a deal with China to halve its sales of hybrid cars in the bloc.
Blume backed the EU’s proposed “Made in Europe” rules while speaking in Paris.
Volkswagen revealed the production version of its electric ID Tiguan.
- Volkswagen chief executive
- Oliver Blume
- Proposed EU rules
- Industrial Accelerator Act, also known as “Made in Europe” rules
- Volkswagen job cuts
- Up to 100,000
- Worldwide model range
- Planned reduction from 150 models to 75
- ID Tiguan
- Production version revealed on Sunday
Sources
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