Volkswagen Backs EU's Made in Europe Plan Before Paris Motor Show
Volkswagen chief Oliver Blume backed the EU's Made in Europe proposals in Paris on Sunday, 11 October 2026, on the eve of the Paris motor show.
The formal name is the Industrial Accelerator Act. It would reserve subsidies, or government financial support, and public procurement, or government purchases, for products with a large share of EU materials and EU manufacturing. The European Commission describes the Act as new measures to increase demand for low-carbon, European-made products and boost EU industry and jobs European Commission.
Blume said European carmakers need comparable conditions to compete with Chinese rivals. He said Made in Europe rules must reward real value creation in Europe The Guardian.
He pointed to four pressures: high energy costs, weaker demand amid high inflation, the need to develop cars faster, and strong competition from China. The EU said it had reached a deal with China to halve Chinese hybrid car sales in the bloc.
Blume hosted French industry minister Sebastien Martin in Paris. Chief financial officer Arno Antlitz was present. Volkswagen is exhibiting at the Paris show for the first time in 20 years. It revealed the production version of the all-electric ID Tiguan on Sunday.
Volkswagen Group also convened its own For Europe forum in Paris on the eve of the show Volkswagen Group. The company dates the agenda to 11 October 2026. Blume said Europe has everything it needs to remain economically successful, including industrial strength. He said Volkswagen was working to reduce complexity across the company. Detailed Made in Europe proposals were set out together with Stellantis chief executive Antonio Filosa, according to company materials.
Several EU policies sit alongside the Act. The Commission's Action Plan titled Boosting the European car sector aims to make the car industry strong, sustainable and competitive. The Commission later presented further measures to support the shift to clean mobility. The EU's Clean Industrial Deal, launched on 26 February 2025, sets out actions to turn decarbonisation, or cutting carbon emissions, into a driver of growth for Europe. A separate One Europe, One Market roadmap aims to strengthen competitiveness by the end of 2027.
Volkswagen paired its endorsement with restructuring detail. It has launched a plan to cut as many as 100,000 jobs. Blume described it as the largest transformation in its history. It plans to cut its worldwide model offering from 150 to 75 across brands including Audi and Skoda.
The broader context here is a shift from setting rules to shaping demand. Brussels has long regulated emissions and competition. Making subsidies and public purchases conditional would affect who gains from public money. The key questions will be thresholds, how value creation is verified, and how batteries, software and tiered suppliers are treated. Paris matters too. Close contact between Europe's largest car group and the French government shows where industrial coalition-building now sits.
Looking at what this means for automakers, the trade-off is direct. Preference for local content could protect margins for EU-based production while raising compliance costs and supply-chain scrutiny. Rivals with China-centred sourcing would face a harder qualification path. Volkswagen is counting on regulatory support plus internal simplification to fund its electric transition.
