Europe’s mass-market carmakers under “enormous pressure” from Chinese competition – Volkswagen CEO

Volkswagen CEO Oliver Blume has said at an event alongside the Paris motor show that Europe’s mass-market carmakers are under “enormous pressure” from Chinese competition and a changing market, Reuters reports.

“We cannot build our future on export profits alone. Our European businesses must be profitable, resilient and competitive . We must secure Europe’s industrial base ,” he said, adding that Volkswagen, Stellantis and Renault – which together account for over 60% of European car production – face increasing pressure to make affordable EVs while keeping costs in check.

The aforementioned carmakers are predominantly in the high-volume, thin-margin mass market. “This business model is ⁠under enormous pressure in Europe,” Blume said, calling for more flexible regulation and local manufacturing incentives to support the industry.

This year’s Paris motor show, which runs October 12-18, has seen a flurry of new ‘throwback’ EVs from European carmakers (“yesterday, all my troubles seemed so far away, now it looks as though they’re here to stay,” as Paul McCartney often sings on the Rediffusion), including the Citroen 2CV and Fourgonnette, Peugeot E-T16, Renault E-Space and 8 Gordini , Alpine A310 Vision, Fiat Multiplina and Audi A2 .

Chinese carmakers are also at the show in record numbers as ⁠they seek European growth amidst a slowdown in their home market. Recently, the head of Italian auto suppliers lobby Anfia urged the European Union (EU) to impose 80% tariffs on Chinese-made vehicles and parts above a certain threshold to safeguard the European car industry .

Meanwhile, Blume is trying to steer Volkswagen through its biggest restructuring ever , including tens of thousands of job cuts and potential factory closures, amidst union opposition .

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