Volkswagen links EU policy to major overhaul

On Oct. 11, 2026, Volkswagen CEO Oliver Blume described the company’s restructuring as “the biggest transformation programme in our history.” He spoke at a “For Europe” event held on the eve of the Paris motor show, framing the overhaul as central to the automaker’s future direction. The comments underline that Volkswagen is undertaking wide‑ranging changes across its operations and product lineup.

Blume characterised the effort as a “shared responsibility,” stating that the business community must become more competitive and create attractive opportunities, while policymakers must establish the right framework conditions. This framing places Volkswagen’s internal changes within a broader European industrial and regulatory context.

Blume urged European Union policymakers to put in place framework conditions that support Volkswagen’s transformation. He has previously backed local‑content or “Made in Europe” rules aimed at incentivising manufacturing within the region. Such measures are positioned as tools to strengthen Europe’s industrial base as competition in electric vehicles intensifies.

He also pointed to trade policy as a factor for the sector. Blume said a deal between the EU and China could cut Chinese imports of plug‑in hybrid vehicles into the bloc by more than half. He described such a deal as an important step toward levelling the playing field in the European market.

At the Paris motor show, Volkswagen is using its presence to highlight more affordable electric vehicles. The group is showcasing models across its volume brands, including VW, Cupra and Skoda, as part of an effort to compete more effectively on price. Expanding accessible EV offerings is a core element of Volkswagen’s response to rising competition, especially from lower‑cost Chinese manufacturers.

Positioning these vehicles at a major European motor show connects the company’s strategic messaging with tangible products. The focus on affordability aligns with Blume’s emphasis on competitiveness and the need to broaden the appeal of electric mobility to a wider customer base.

Alongside its product push, Volkswagen is pursuing significant internal restructuring. The company is implementing job cuts as part of its drive to reduce complexity and improve efficiency. These measures are intended to support the broader transformation programme described by Blume.

Volkswagen has also threatened to close up to four plants in Germany. The potential closures highlight the depth of the changes under consideration within its manufacturing footprint. Taken together, the job reductions and plant risks illustrate how the transformation involves difficult operational decisions as well as new model launches and policy engagement.