Volkswagen CEO Oliver Blume has called for greater cooperation between France and Germany to strengthen European competitiveness against Chinese rivals. Speaking ahead of the Paris Motor Show, Blume warned that Europe must respond to the threat posed by Chinese manufacturers, noting that Chinese carmakers seized a 25 percent share of the EU's plug-in hybrid market in the first half of 2026, up from just 2 percent in 2024. The Élysée Palace and the Chancellery have been negotiating EU proposals for phasing out combustion engines and incentivizing domestic production, but remain at odds over the definition of "Made in Europe." BYD and other Chinese manufacturers have expanded sales in Europe following higher EU tariffs on EVs, seeking profits during a downturn in their domestic market.
Blume welcomed progress in EU-China trade talks but emphasized Europe must ensure a level playing field. Volkswagen is embarking on a historic restructuring, seeking to share more components across its brand group and potentially shedding up to 100,000 jobs. French industry minister Sébastien Martin hailed joint European efforts to set up "ramparts" against Asian competition, though he doubled down on France's position that "Made in Europe" proposals must be strictly defined as the 27 member states rather than including trading allies.
One potential quid pro quo involves Paris softening emissions rules for 2030 and 2035 to favor alternative fuels or plug-in hybrids.
Source: Financial Times Companies · Summarized by HeadlinesBriefing