Volkswagen Group CEO Oliver Blume called for European policymakers to establish the right conditions for industry as the automaker restructures and tries to strengthen its electric-vehicle lineup. His message was a shared-responsibility appeal—not a reported request for a specific new subsidy package. Reuters reported the remarks on October 11, 2026, at Volkswagen’s “For Europe” event on the eve of the Paris Motor Show.
What support is Blume urging the EU to provide?
Blume said businesses must become more competitive and create attractive offerings, while policymakers must establish suitable framework conditions. Reuters quoted him saying: “This is a shared responsibility: The business community must become more competitive and create attractive opportunities, while policymakers must establish the right framework conditions.”
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The report does not specify a new, formal package of subsidies or other measures that Blume requested at the event. It does, however, place his appeal alongside two relevant policy positions: he described an EU-China arrangement affecting plug-in hybrid imports as an important step toward a level playing field, and he has previously supported proposed European local-content incentives.
Why Volkswagen is pressing for change
Restructuring and execution inside the company
Reuters described Volkswagen as undertaking its largest transformation programme, reducing complexity across a group that spans mass-market Volkswagen as well as Porsche and Lamborghini. The report also noted that job cuts were being implemented, closures of up to four German plants had been threatened, and investors were pressing for progress in products and software as well as downsizing.
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In a July 13, 2026 interview published by Volkswagen, Blume described a plan of 12 initiatives presented to the Supervisory Board, comprising about 150 pages and 45 individual resolutions. He said it was intended to make the company more robust, faster and more competitive, including by reducing model complexity and costs. Those are the company’s stated aims, not an independent assessment of the plan’s results.
Electric vehicles and competitive pressure
Reuters said Volkswagen was racing to update its mass-market EV offer as Chinese competitors gained ground in Europe. Blume’s July interview offered the company’s perspective on the competitive landscape: he cited more than 150 automotive competitors in China and a price decline of more than 15 percent there in recent years. He also said Chinese manufacturers had reached a 31 percent share of Europe’s plug-in hybrid market, which he described as not protected by EU tariffs. These figures are Blume’s statements in Volkswagen’s interview, not independently verified market measurements in that account.
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Reuters quoted Rhodium Group analyst Gregor Williams warning: “But if China also manages to export the price war, the European market could become very unprofitable.” The concern is that price competition could squeeze manufacturers’ returns just as they invest in new vehicles and technology.
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Reuters reported that an EU-China arrangement could reduce Chinese plug-in hybrid imports into the bloc by more than half, and said Blume viewed the arrangement as an important step toward a level playing field. Separately, he had previously backed proposed local-content incentives in Europe. Neither detail should be read as proof that he formally demanded a new incentive scheme at the October 11 event; the reported event-day appeal remained broad.
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Volkswagen’s European scale
Volkswagen’s official “For Europe” event page gives a sense of the company’s footprint, using the Group’s own 2025 figures. They show both the scale of its European operations and why the company presents the region’s industrial conditions as consequential:
| Measure | Volkswagen Group figure |
|---|---|
| Employees in Europe | 476,400, approximately 72% of the Group’s global workforce |
| Plants | 55 in 16 countries |
| Vehicles delivered to customers in Europe | 3.94 million, or 44% of global deliveries |
| Market share | 25% across drive types; 27% for all-electric vehicles |
| Annual procurement spending in Europe | More than €100 billion; seven of the Group’s 10 largest suppliers are European |
These are company-reported figures for 2025, rather than independent measures of Volkswagen’s economic impact. They provide context for Blume’s argument that the future of the business depends on both internal change and the conditions in which European manufacturers operate.
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What the appeal means—and what it does not
Blume’s message assigns work to both sides: Volkswagen has to improve competitiveness and deliver attractive products, while policymakers should create an appropriate framework. The event-day reporting connects that appeal to the EV race, restructuring, and specific trade and local-content debates, but does not identify a newly requested policy package. The distinction matters: a broad call for supportive conditions is not the same as a documented demand for a particular subsidy.
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