Volkswagen and Stellantis CEOs seek EU protections for European-made EVs

Thursday 05 February 2026 - 16:20

By: Dakir Madiha

Volkswagen and Stellantis CEOs seek EU protections for European-made EVs

CEOs of Europe's two largest carmakers are urging the European Union to shield the domestic auto industry from intensifying competition by Chinese manufacturers across the continent.

Volkswagen CEO Oliver Blume and Stellantis CEO Antonio Filosa published a joint op-ed Wednesday evening in three major European business dailies: Les Echos, Handelsblatt, and Il Sole 24 Ore. They called for a comprehensive "Made in Europe" strategy that would include CO2 emissions bonuses for vehicles manufactured within the EU.

Under their plan, qualifying "Made in Europe" vehicles would earn a designated label and benefits like national purchase incentives and preferential public procurement treatment. The executives argue vehicle-level purchase incentives alone fall short; carmakers concentrating production in Europe deserve offsets for higher local manufacturing costs.

"CO2 regulation offers a powerful lever here. Every electric vehicle 'made in Europe' should receive a CO2 bonus," Blume and Filosa wrote. They added that if a maker meets European production thresholds for a substantial fleet share, bonuses should extend to all its EVs.

Though their firms compete fiercely, the CEOs say they share "responsibility to make Europe an industrial powerhouse."

The joint plea comes as Brussels repeatedly delays its industrial accelerator law, which would define "Made in Europe" for public subsidies and tax incentives eligibility. Originally set for January 28, 2026, it slipped to February 25 after multiple postponements. The legislation forms a key part of EU industrial policy to boost competitiveness against low-cost rivals, especially from China.

Chinese brands hit a record European market penetration, claiming nearly one in 10 passenger cars sold in January per recent data, capping a year of rapid growth. 2025 Chinese sales reached 810,982 vehicles for a 6.1 percent share, up 99 percent from 2024.

SAIC-backed MG led with over 307,000 units, followed by strong gains from BYD and Stellantis-backed Leapmotor. Analysts forecast Chinese brands could capture 12 to 15 percent of the European market by 2030 to 2035.

Stellantis Chairman John Elkann warned the European auto sector faces "irreversible decline" without friendlier rules, while Filosa called for "urgent and definitive action" to restore industry momentum.