Europe's mass-market carmakers under 'enormous pressure', Volkswagen CEO says

Europe's mass-market carmakers under 'enormous pressure', Volkswagen CEO says PARIS, Oct 13 : Europe's mass-market car industry is under "enormous pressure" from Chinese competition and a changing market, Volkswagen's CEO Oliver Blume said on Tuesday, renewing calls for more flexible regulation and incentives to support local manufacturing. Speaking at an event alongside the Paris motor show, Blume said Volkswagen, Stellantis and Renault — which together account for more than 60 per cent of European car production — face growing pressure to produce affordable electric vehicles while keeping costs under control. "We cannot build our future on export profits alone. Our European businesses must be profitable, resilient and competitive," he said. Blume is trying to drive through the biggest restructuring in Volkswagen's history, including tens of thousands of job cuts and potential factory closures, in the face of union opposition. "We must secure Europe's industrial base," he said. Volkswagen, Stellantis and Renault are all using the show to present new EV models as European demand for the technology gathers pace, helped by higher fuel prices and a growing range of lower-cost vehicles. Chinese brands are also at the show in record numbers as they seek growth in Europe amid a slowdown in their home market, fuelling concerns among European manufacturers about the impact of low-cost imports. Volkswagen, Stellantis and Renault are heavily exposed to the mass-market segment, where high sales volumes typically come with thin margins. "This business model is under enormous pressure in Europe," Blume said, repeating Volkswagen's call for policymakers to support the industry through more flexible regulation and incentives for local manufacturing.