Volkswagen Group calls for EU policy shifts to counter global competition

Volkswagen Group is calling for urgent structural changes and policy revisions to maintain European competitiveness amidst intensifying global pressure. CEO Oliver Blume has urged European leaders to review CO2 regulations and address trade relations with China to protect the ‘Made in Europe’ industrial base.

To combat these structural shifts, the company is implementing its largest transformation program to date, focusing on electric mobility, battery technology, and software. However, the company is also facing internal economic pressures. Volkswagen AG has issued formal notice to terminate several collective agreements effective December 31, 2026, following meetings with the IG Metall union.

Arne Meiswinkel, Chief Human Resources Officer for the Volkswagen brand, cited a massive shift in the economic environment, specifically noting that Chinese manufacturers are increasing pressure on prices through competitively priced exports. The company aims to implement cost-reduction measures and adjust overhead to remain competitive in a changing market.