At a side event during the Paris Motor Show on 13/10, leaders from Volkswagen, Stellantis, and Renault urged European policymakers to increase support for the automotive industry. This call comes amid significant pressure from Chinese rivals and the ongoing transition to electric vehicles.
Oliver Blume, Volkswagen's chief executive officer, stated that Europe's mainstream automotive sector faces immense pressure. Carmakers must develop affordable electric vehicles while controlling costs to remain competitive. Volkswagen, Stellantis, and Renault currently account for over 60% of Europe's car production.
Blume proposed that authorities adopt more flexible regulations and offer incentives to encourage regional production. According to the Volkswagen leader, businesses need to build a robust industrial base in Europe, rather than relying solely on export profits.
Emission reduction targets are a key concern for automakers. Francois Provost, Renault's chief executive officer, warned that the company might have to cut approximately 300,000 cars produced in Europe if policymakers do not show flexibility with the 2030 emission targets.
Meanwhile, Antonio Filosa, Stellantis' chief executive officer, believes Europe needs to develop more electric vehicle battery manufacturing plants. The region must also address high energy costs, which increase production expenses and hinder companies from developing competitively priced electric vehicle models.
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A pure electric Citroen 2CV model at the Paris Motor Show 2026. Photo: Electrifying
Previously, the European Union (EU) reached an agreement with China to limit the import of hybrid vehicles into the bloc. This agreement could reduce the volume of Chinese hybrid vehicles exported to Europe by more than half. European automakers generally welcomed this move but believe trade measures are insufficient to address underlying cost and technological disadvantages.
Recent business results clearly illustrate the competitive pressure. BMW reported a 6,4% decrease in global vehicle deliveries in Q3 compared to the same period last year, with sales in China dropping by approximately 25%. Stellantis also recorded a 1% decline in vehicle deliveries to dealerships during the quarter, partly due to a summer production halt in North America.
European carmakers are responding by launching more electric vehicle models and leveraging their established brand advantages. At the Paris Motor Show, Stellantis introduced an electric version of the Citroen 2CV, while Volkswagen unveiled an electric Polo with a design reminiscent of the 1980s Golf model.
However, companies still face a difficult challenge: maintaining production and employment in Europe while developing electric vehicles that can compete on price with Chinese rivals. Chinese brands increasingly combine modern technology with attractive pricing, adding pressure to the mainstream vehicle segment, which typically has low-profit margins.
By Hai Dang (Reuters)
