Business · Trade · 6 hrs ago
Volkswagen chief urges Europe to support carmaker’s restructuring
Volkswagen chief executive Oliver Blume has called on European policymakers to create conditions that help the company succeed in its restructuring.
He spoke at an event in Paris before the Paris Motor Show, as Volkswagen works to simplify its business and update its electric-car range.
The company faces pressure from Chinese carmakers, which are expanding in Europe amid falling sales and price competition at home.
Blume backed proposed rules to encourage production in Europe and welcomed a possible EU-China agreement that could more than halve imports of Chinese plug-in hybrid cars into the bloc.
Volkswagen is also dealing with plans for major job cuts and the possible closure of up to four factories in Germany.
Investors want proof that its recovery strategy will improve products and software, not just reduce costs.
The company is set to present affordable electric cars from its VW, Cupra and Skoda brands, as well as a new electric SUV called the ID.
Tiguan.
Volkswagen chief executive Oliver Blume urged European policymakers to create conditions for the company’s restructuring to succeed.
He described the effort to reduce complexity across the company as its largest transformation programme in history.
Blume said businesses must become more competitive while policymakers establish suitable conditions.
He backed proposed “Made in Europe” rules and welcomed a possible EU-China agreement that could cut the bloc’s imports of Chinese plug-in hybrid vehicles by more than half.
Volkswagen is restructuring and updating its mass-market electric vehicle line as Chinese carmakers expand in Europe.
- Who
- Volkswagen chief executive Oliver Blume.
- What
- He urged European policymakers to support conditions for the carmaker’s restructuring and backed measures to encourage local production.
- When
- Sunday the 11th, the day before the Paris Motor Show.
- Where
- At a “For Europe” event in Paris.
- Why
- Volkswagen is restructuring and faces growing competition from Chinese carmakers in Europe.
This story does not have two clearly opposing sides.
This is a shared responsibility: businesses need to become more competitive and create attractive opportunities, while policymakers must establish the right conditions.
Those who sell here must compete on similar terms and also generate jobs and value here in Europe.
The industry has become much more concerned about the competitive challenge emerging from China.
But if China can also export the price war, the European market could become very unprofitable.
Blume spoke at a “For Europe” event on the eve of the Paris Motor Show.
Volkswagen was set to present an affordable electric vehicle line from its mass-market brands and debut its new ID. Tiguan electric SUV.
- Volkswagen chief executive
- Oliver Blume
- Transformation programme
- Described by Blume as Volkswagen’s largest in its history
- Possible EU-China agreement
- Could cut Chinese plug-in hybrid vehicle imports into the bloc by more than half
- Volkswagen market share in Europe
- Approximately one quarter over the past decade
- Potential factory closures
- Up to four in Germany
Sources
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