NRT briefing
Volkswagen CEO says transformation is ‘shared responsibility’ in appeal to EU
Based on reporting by New York Post.
The Brief
Volkswagen CEO Oliver Blume called for European policymakers to create the regulatory framework needed for the German automaker's restructuring to succeed, speaking at an event titled “For Europe” on the eve of the Paris motor show. Blume said Volkswagen is working to reduce complexity across its brands in what he called “the biggest transformation program in our history,” and framed the effort as a “shared responsibility” between business and policymakers.
He backed proposed “Made in Europe” rules to incentivize local manufacturing and welcomed a recent EU-China deal that could cut Chinese imports of plug-in hybrid vehicles by more than half. The company is battling sweeping job cuts and threatening to close up to four plants in Germany, while facing investor pressure to show progress in product development and software.
Blume also emphasized that those selling in Europe should “compete under comparable conditions and create jobs and value here in Europe too.” The Paris show is a critical juncture for Volkswagen, which is updating its affordable EV lineup and premiering the new ID.
Tiguan electric SUV, as Chinese competitors rapidly gain ground. Analyst Gregor Williams of Rhodium Group noted that the downturn in China's auto market is creating export pressure, adding, “If China also manages to export the price war, the European market could become very unprofitable."