Volkswagen Urges EU to Act: Without Protection, Europe’s Auto Industry Could Lose to Chinese Brands
A. Krivonosov
VW CEO Oliver Blume wants EU policy that forces foreign carmakers to invest locally — not just sell. The battle is over cheap EVs and hybrids that escaped tariffs.
At the launch of the electric ID. Polo production in Martorell, Volkswagen CEO Oliver Blume called for tougher European policy toward the auto industry. In his view, foreign manufacturers operating on the EU market should not only sell cars but also invest in local plants, components, and R&D. Blume insists this is not protectionism.
What he means, he says, is a level playing field: “I think we should rather talk about a European policy of interests, similar to what other regions of the world pursue.” For Volkswagen, this is no longer an academic debate but a question of price in the most sensitive segment — affordable electric cars. The company is especially wary of hybrids: the EU has already imposed tariffs on electric vehicles from China, yet plug-in hybrids and other “partially” electrified models slipped through these measures.
Blume points out that in China such cars are developed and built more cheaply, leaving European brands to compete against vehicles with a structurally lower cost base. Volkswagen’s response is small electric cars for the mass market. New models from VW, Cupra and Skoda will be assembled in Spain, with Seat/Cupra leading the project.
By pooling development and production, the group aims to save 600 million euros. In this class, price decides almost everything: buyers won’t dig through EU policy if a similar car stands next to it for less. According to industry analyst Constantin Gall of EY, the current situation favours foreign manufacturers in particular, because they are more strongly represented in the lower price segment.
Volkswagen claims a 27% share of the European EV market, but even that isn’t enough to avoid potential fines under fleet CO₂ rules. EV sales are currently propped up by expensive petrol amid geopolitical tensions and by state subsidies in Germany and across Europe.
In Germany, fully electric cars already account for around a quarter of new-car sales, in the EU roughly a fifth. But the closer EVs get to mainstream buyers, the less those buyers are willing to pay just for the idea of switching to a new technology. For Volkswagen, the question is no longer who shows the first affordable EV. The question is who can build it cheaply without losing European production.
According to 32CARS.RU, the SSP platform will help Volkswagen cut the cost of future electric vehicles.
