Volkswagen CEO urges German carmakers should learn from China

Volkswagen CEO Oliver Blume said Germany’s car industry should learn from China’s more disciplined industrial planning as the automaker restructures to stay competitive.

In an interview with Bild am Sonntag, Blume said China sets clear priorities and executes them with a “high level of discipline and willingness to execute,” and he encouraged German companies to look outside their home market.

He also described China as a tough market for Volkswagen, citing more than 150 competitors and rapid innovation.

Blume reiterated that Volkswagen plans to cut 50,000 jobs in Germany by 2030 as part of its overhaul.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Blume’s praise for China ties to reliance on local partners and its tech base

CEO Oliver Blume praised China’s planning as Volkswagen leans on local partnerships through its “In China, for China” approach to stay relevant in a market it once dominated 1.
Volkswagen agreed to invest about $700 million for a 4.99% stake in Chinese EV maker XPeng (an electric-vehicle manufacturer) 2.
The VW brand signed a framework agreement with XPeng to co-develop two China-specific mid-size electric models for rollout in 2026, after Europe-developed ID. series EVs failed to spark enthusiasm among Chinese car buyers 2.
German brands’ share in China fell to 15.4% by 2025, while domestic brands rose to 65.3% 3.

German job cuts run alongside restructuring as the China strategy expands

Volkswagen plans to cut around 50,000 jobs in Germany by 2030 after profits fell 4.
In China, the group set up the Volkswagen (China) Technology Company in Hefei, which China Daily calls its largest R&D (research and development) facility outside Germany and it employs about 3,000 engineers 1.
The “In China, for China” plan targets “China speed,” and Volkswagen says it has cut time-to-market for new technologies by more than 30% 1.
Across Germany’s auto sector, suppliers Bosch (an engineering and electronics supplier), ZF (a major auto parts supplier), Continental (a tire and automotive technology company), and Schaeffler (an industrial and automotive components supplier) are also cutting jobs amid intense global competition 5.