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VW Chief Warns of Chinese EV Price War Threat
11 Oct
Summary
- Volkswagen CEO expects EU policy to aid company restructuring.
- Chinese automakers are aggressively entering the European market.
- Volkswagen is implementing its biggest transformation program ever.
Volkswagen CEO Oliver Blume expressed confidence that European policymakers will provide the necessary framework for the German automaker's extensive restructuring efforts. Speaking at an event in Paris, Blume described Volkswagen's current transformation as the most significant in its history, emphasizing a drive to reduce company complexity.
He stated that competitiveness is a shared responsibility, requiring businesses to create attractive opportunities while policymakers establish supportive conditions. This comes at a crucial time for Europe's leading carmaker, as it battles an electric vehicle price war and increasing competition from Chinese automakers rapidly expanding into the European market.
Volkswagen is preparing to unveil a suite of affordable electric vehicles from its volume brands at the Paris motor show, including the new ID. Tiguan electric SUV. Despite maintaining a significant market share, Volkswagen is feeling the pressure from Chinese competitors like BYD and Leapmotor.
Blume has joined other German auto industry leaders in calling for a more protectionist European Union stance. He views a recent EU-China deal potentially reducing plug-in hybrid imports as a positive step towards a level playing field, and has previously supported local content rules to encourage European manufacturing.
