Volkswagen, Renault, and Stellantis unite to counter Chinese competition

Volkswagen, Renault, and Stellantis have formed an alliance to counter the rising influence of Chinese automakers in the European market. According to industry leaders, Chinese manufacturers' market share in Europe doubled to approximately 10 percent during the first eight months of this year.

Volkswagen Group CEO Oliver Blume stated at the Paris Motor Show that the group, which represents over 60 percent of European automotive production, must protect the continent's industrial base. The companies are facing challenges related to the high investment costs of the electric vehicle transition and the need for affordable, small-scale vehicle segments, which they argue current regulations may make difficult to produce.

The alliance also seeks to influence European Union policy. The companies are advocating for measures such as tying state aid and tax incentives to local European production and are discussing potential adjustments to the 2035 zero-emission mandate to alleviate the financial burden of massive required investments and potential fines.