Volkswagen CEO Oliver Blume praised the structure of China’s five-year plans, suggesting Germany could learn from the approach.
Volkswagen CEO Oliver Blume views China’s state-guided economy as a potential model for Germany. “The Chinese capture a extremely strategic approach with so-called five-year plans and have clear priorities,” Blume told “Bild am Sonntag.” “This is optimally structured. And what we experience very positively in China is a high level of discipline and willingness to perform to implement issues.”
Blume suggested that looking at how other countries operate could be beneficial, specifically highlighting China’s development as a potential learning opportunity.
The European Union, however, attributes the success of the Chinese automotive industry in Europe to state subsidies and resulting market distortions. In October 2024, the EU imposed tariffs on electric vehicles from China, and in early 2026, the European Commission proposed minimum prices for Chinese EVs.
Looking ahead to a summit with German Chancellor Friedrich Merz, the VW CEO emphasized the require for swift decision-making and concrete implementation plans. He stressed the importance of measuring progress on these initiatives, expressing hope for increased momentum.
Volkswagen recently announced a drastic plan to reduce its workforce by 50,000 positions, citing significant declines in profits. Despite this, Blume reaffirmed the company’s commitment to maintaining a presence in Germany, while calling for radical productivity improvements. “We will continue to put capacities to the test in the future,” Blume stated, pointing to global overcapacity.
Blume noted that global markets have fundamentally shifted, making it unsustainable to develop, build, and export vehicles from Germany. He explained that different regions of the world have changed significantly.
Blume confirmed the goal of socially responsible job cuts in Germany by 2024. Regarding reports of potential plant closures, he explained that excess capacity is costly, leading the company to link its plants to “clear factory cost targets.” This applies not only to Germany and Europe but too to China. While “Made in Germany” remains valuable, Blume acknowledged that costs are too high. “We have a higher cost structure, including higher labor costs. And we need to compensate for that with higher productivity,” he said.
He also criticized the current political environment, citing high energy costs and excessive regulation. Despite the current challenges, Blume pointed to increased order backlogs and positive product reception. However, he concluded with a firm message: “The restructuring will continue.”
Reuters/kami
