Volkswagen chief Blume backs EU Made in Europe rules — The Guardian

In Paris, France, Volkswagen chief Oliver Blume supported the European Union’s proposed Made in Europe rules, intended to strengthen the position of European industry in competition with Chinese manufacturers. As The Guardian reports , he said such rules should reward the real creation of added value in Europe.

Conditions for subsidies and procurement The initiative, officially called the Industrial Accelerator Act, provides for limiting subsidies and public procurement to products for which a significant share of materials and production is located in the EU. According to the EU’s plan, the rules are meant to respond to the rapid growth of Chinese brands in the European car market and other important manufacturing sectors.

Blume noted that European carmakers are under considerable competitive pressure. Among the challenges, he named high energy prices, lower demand due to high inflation, the need to develop cars faster, and intense competition from China. More current news is available on the UA.News Telegram channel Telegram .

Volkswagen’s position According to Blume, German carmakers are ready to compete with Chinese companies, but businesses that invest and develop products in Europe should receive clear advantages. He also said that companies selling products on the European market should compete on comparable terms and create jobs and added value in Europe.

Volkswagen is one of the European companies most affected by the situation in the industry. The carmaker has launched a transformation programme that provides for cutting up to 100,000 jobs. Volkswagen chief financial officer Arno Antlitz explained the cuts by the need to increase profitability and protect the company’s position in its home market.

Reducing the model range The company also plans to reduce the total number of models worldwide from 150 to 75 across brands including Volkswagen, Audi and Škoda. The group expects this to reduce the complexity of production and dealer operations, as well as vehicle costs. Volkswagen is taking part in the Paris Motor Show for the first time in 20 years.

On Sunday, the company unveiled the production version of the electric ID. Tiguan, an electric variant of its most popular family SUV.