European Auto Giants Sound Alarm: VW and Stellantis Demand EU Support to Preserve Manufacturing Base
Europe's automotive heartland is under siege, and its leading manufacturers are issuing a stark call to arms. In a rare joint editorial published across major European newspapers on Thursday, the CEOs of Volkswagen and Stellantis, Oliver Blume and Antonio Filosa, demanded urgent government intervention to prevent the exodus of car production from the continent.
The executives outlined a three-pronged support plan: consumer subsidies for EU-made electric vehicles (EVs), preferential government procurement, and a direct "CO2 bonus" payment to manufacturers. "European taxpayers' money should be carefully deployed to promote European production and bring investment into the EU," they argued in publications including Les Echos and Handelsblatt.
The plea underscores a perfect storm battering the industry. European carmakers are caught between rising U.S. tariffs, a reliance on Chinese-dominated EV supply chains for critical components like batteries and rare earths, and the aggressive expansion of Chinese automakers like BYD into their home market. The EU's recent imposition of higher tariffs on Chinese EVs, citing unfair subsidies, has done little to alleviate the underlying structural pressures.
"In a world where others proudly defend their industries, Europe must urgently decide whether it wants to become merely a market for others or remain a producer and industrial power," Blume and Filosa wrote, framing the issue as a choice between sovereignty and dependency.
They highlighted a central paradox: to make affordable EVs that European consumers demand, manufacturers are forced to source the cheapest batteries, which often leads back to China. A true "'Made in Europe' strategy," they contend, is essential to break this cycle and ensure competitive, locally produced vehicles.
Industry Voices React
"This is a long-overdue wake-up call," says Klara Schmidt, an automotive analyst based in Berlin. "The integrated supply chain advantage China built over a decade can't be undone overnight. Strategic subsidies are a necessary bridge to rebuild European industrial resilience."
"It's pure protectionism dressed up as strategy," counters Marco Ferrara, a free-market economist in Milan. "They had years to adapt. Now they're holding jobs hostage for bailouts while failing to innovate at the pace of their competitors. Let the market decide."
"As a worker at a Stellantis plant, this isn't abstract—it's about my community's survival," shares Annette Dubois from Lyon. "We can build great cars here, but we need a level playing field. The call for a CO2 bonus for EU production is a smart way to tie support to our green goals."
"The 'Europe for Europeans' rhetoric is worrying," notes David Chen, a trade policy researcher in Brussels. "While legitimate concerns exist, turning inward risks a damaging subsidy war and ignores the benefits of global supply chains. The solution must be about upgrading competitiveness, not just raising walls."