Published : 13 Oct 2026, 04:59 PM
Updated : 13 Oct 2026, 04:58 PM
Europe’s mass-market carmakers are under “enormous pressure” from Chinese competition and a changing market, Volkswagen Chief Executive Oliver Blume said on Tuesday, calling for more flexible regulations and incentives to support local manufacturing.
Speaking at an event alongside the Paris motor show, Blume said Volkswagen, Stellantis and Renault, which together account for more than 60 percent of European car production, face growing pressure to build affordable electric vehicles while controlling costs.
“We cannot build our future on export profits alone. Our European businesses must be profitable, resilient and competitive,” he said.
Blume is pushing ahead with the biggest restructuring in Volkswagen’s history, including tens of thousands of job cuts and potential factory closures, amid opposition from unions.
“We must secure Europe’s industrial base,” he said.
Volkswagen, Stellantis and Renault are using the motor show to present new electric vehicle models as European demand for the technology gains momentum, supported by higher fuel prices and a wider selection of lower-cost cars.
Chinese brands are also attending the show in record numbers as they seek to expand in Europe amid a slowdown in their home market. Their growing presence has heightened concerns among European manufacturers about the impact of low-cost imports.
The three European carmakers are heavily exposed to the mass-market segment, where high sales volumes typically come with thin profit margins.
“This business model is under enormous pressure in Europe,” Blume said, reiterating Volkswagen’s call for policymakers to ease regulatory requirements and provide incentives for local manufacturing.
