Volkswagen’s CEO Oliver Blume called for closer cooperation between France and Germany to enhance European competitiveness in the automotive sector, amid growing challenges from Chinese manufacturers. Speaking ahead of the Paris Motor Show, where Chinese car brands accounted for roughly 40 percent of exhibitors, Blume emphasized the need for unified action to counter the expanding influence of Chinese vehicles in Europe.

Despite ongoing negotiations between the Élysée Palace and the German Chancellery on European Union proposals aimed at phasing out combustion engines and encouraging local manufacturing, progress has been slow. The two countries remain divided on the criteria defining "Made in Europe" products, complicating efforts to protect and promote the bloc’s automotive industry.

Blume highlighted that Europe’s future in the car market is not predetermined and expressed confidence that stronger “Made in Europe” standards, more flexible climate policies, and reductions in energy costs could help the region remain competitive. “When it matters, we have found solutions together,” he said, urging renewed collaborative efforts between France and Germany.

Chinese manufacturers such as BYD have recently made significant advances in the European market, capitalizing on a downturn in domestic demand by exporting vehicles to the region. Following the EU’s imposition of increased tariffs on electric vehicles (EVs) produced in China, the market share of Chinese powertrain products in the European Union surged from 2 percent in 2024 to 25 percent. In response, Brussels and Beijing have reached an agreement where China will limit its hybrid car exports to the EU to half or less of the volumes currently anticipated over the next four years.

Blume welcomed these developments but stressed the importance of maintaining a level playing field within European markets. He argued that companies selling in Europe should face similar rules and contribute to local job creation and value. Volkswagen is undergoing a major restructuring to bolster its competitiveness, which includes sharing more components and technology across its brands and eliminating up to 100,000 jobs.

French Industry Minister Sébastien Martin, speaking at the same event, praised European initiatives aimed at building protective measures to help the continent’s automotive sector withstand increasing competition from Asia. He described these efforts as “ramparts” necessary for the industry to adapt to the shifting dynamics in the global market.