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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Europe, under EU is killing itself… allowing illegal migrants from thereligionofpeace and destroying its own culture just to implement communism!!(one world gov)
Yeah no 5h!t sherlock do something about it, the answer is innovation not price hikes and screwing our your customer base with mediocre updates.The Chinese competition are throwing everything and the kitchen sink at very low prices, customers are spoiled for choice. The only thing european car makers can yap about is the handling but the chinese EVs drive like boats by design it’s their preference. We know chinese drivers on the whole don’t care for dynamics as long as it gets from A to B. Don’t assume they dont know how to tune to carter to specific markets. Its just one AI prompt away from optimization down such a degree that BMW can pack it up and go belly up any minute oh wait, they already have, SU7 just said hi. 100 years of accumulated experience is now overrated, deal with it. The paradigm has already shifted, every skill or know-how can be replicated with enough training for an LLM.
This represents a major win for the industry.
Several American and European joint ventures with Chinese firms are leveraging advanced, sustainable, and robust technologies to deliver what consumers demand, while simultaneously working toward the 2016 Paris Agreement goals.
The solution is rather simple… let them acquire you…
It’s been done all the while, Skim cepat Kaya for top management.
Stop overcharging your clients