Volkswagen Group chief executive Oliver Blume endorsed European Union proposals to prioritize domestic manufacturing, demanding that public tenders and public subsidies favor companies investing inside the trade bloc. Speaking in Paris on Sunday (11), the German executive warned that European carmakers face intense cost disadvantages against subsidized Chinese competitors across critical consumer vehicle segments.

The policy endorsement coincides with the largest structural retrenchment in the history of the German automotive group, which is currently weighing up to 100,000 job reductions while halving its global portfolio of vehicle models from 150 to 75 across mass and premium brands such as Audi and Škoda. The automaker is grappling with high European energy costs, persistent inflationary pressure on household vehicle purchases, and an influx of low-cost Chinese battery-electric imports that have eroded market share across continental Europe.

Industrial Accelerator Act aims to curb European Union trade imbalance

The regulatory framework supported by Blume, drafted under the title Industrial Accelerator Act, was initially outlined by the European Commission on March 4, 2026. The draft regulation restricts public procurement contracts and clean-technology state subsidies to products built with high thresholds of local assembly and components sourced from member nations, establishing symmetrical requirements for foreign corporations seeking market entry.

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According to commercial records from Brussels, the European Union runs a daily bilateral trade deficit of € 1.18 billion with China, driven partly by asymmetrical manufacturing costs and state support in Asian battery supply chains. Blume addressed these competitive disparities during an executive panel at the For Europe industrial forum, hosted at the Palais de Tokyo in Paris alongside Sébastien Martin, the French minister delegate in charge of industry.

European policymakers had already intervened directly in the automotive balance two days earlier. On Friday, October 9, 2026, the European Commission finalized an agreement in Beijing with Chinese authorities to cut imports of Chinese hybrid vehicles destined for the European market by 50% over the next four years, following warnings by Trade Commissioner Maroš Šefčovič regarding the commercial viability of European factories.

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Oliver Blume demands level playing field for continental car plants

Blume stressed that domestic vehicle manufacturers require immediate policy incentives to sustain research, design, and manufacturing facilities across member states. The executive stated that European carmakers do not oppose market competition from foreign entrants, provided that external competitors manufacture under identical regulatory conditions and generate local employment opportunities across European supply networks.

“Europe is under enormous competitive pressure,” Blume said during his address at the Paris forum. “Companies that invest and develop in Europe must see a clear benefit. Those who sell here should compete under comparable conditions and create jobs and value here in Europe, too.”

The chief executive reiterated that continental integration must serve regional industrial resilience rather than pure market exposure. “We believe in open markets, but openness also means standing up for our own interests in Europe. Because a strong industrial base means more than economic success. It protects technological independence,” Blume said, emphasizing that rules “must reward real value creation in Europe.”

Volkswagen restructuring cuts portfolio from 150 to 75 vehicle models

The group’s management board is carrying out internal spending cuts to protect factory operating margins and fund software and powertrain transitions. Arno Antlitz, chief financial officer and chief operating officer of Volkswagen Group, confirmed that workforce reductions and factory rationalization programs remain necessary to “increase our economic power” and defend key European market shares.

Operational targets set by the executive board include:

• 100,000 workers identified as the upper ceiling for planned workforce reductions across the group
• 150 models reduced to 75 across global vehicle portfolios to diminish factory assembly complexity
• 50% reduction in Chinese hybrid vehicle shipments to the European Union agreed between Brussels and Beijing
• 20 years of absence ended with the official return of the Volkswagen brand to the Paris Motor Show in 2026
• € 1.18 billion daily bilateral trade deficit registered between the European Union and China

The detailed schedule of plant adjustments and specific employment cuts by factory location has not yet been officially released by company leadership. Volkswagen showcased its production-ready ID. Tiguan electric sport utility vehicle during the Paris weekend events, having formally unveiled vehicle specifications on Friday, October 9, 2026. The electric model will gradually replace the existing ID.4 and ID.5 crossover series when customer deliveries begin in the first quarter of 2027, as media briefings open on Monday (12) for the 2026 Paris Motor Show.