VW CEO Warns Europe Carmakers Face Chinese Pressure

Volkswagen CEO Oliver Blume says Europe’s mass-market automakers face intense pressure from Chinese rivals and the shift to affordable electric vehicles, which is squeezing the high-volume, low-margin business model. He and other industry leaders are urging European policymakers to offer more flexible regulations, incentives for local manufacturing, and stronger support for the region’s industrial base and battery production. Chinese brands are expanding their presence in Europe as demand slows in their home market, while European manufacturers are also introducing new electric models and, in some cases, partnering with Chinese companies. The strain is compounded by weak deliveries and high costs, and Volkswagen is pursuing a major restructuring that includes potential factory closures and large job cuts.