European automakers seek policy support amid China pressure

Investing.com -- European automotive manufacturers called on policymakers Tuesday to provide additional support as the industry faces mounting pressure from Chinese competition and the transition to electric vehicles. The appeals came as BMW and Stellantis reported declining third-quarter deliveries.

Volkswagen CEO Oliver Blume said Europe's mass-market car industry faces "enormous pressure" during an event at the Paris motor show. He renewed calls for more flexible regulation and incentives to support local manufacturing.

The European Union announced a deal Friday that could reduce Chinese exports of hybrid vehicles to the bloc by more than half. The agreement addresses concerns that Chinese competitors, facing weak domestic demand and limited access to the U.S. market, could flood Europe with low-cost vehicles.

European manufacturers said policymakers need to address high energy costs and support the shift to electric vehicles. Stellantis CEO Antonio Filosa said Europe needs more EV battery factories.

Renault CEO Francois Provost warned the company may need to cut European production by about 300,000 vehicles if policymakers do not show flexibility over 2030 targets for automakers to reduce carbon emissions.

BMW reported a 6.4% decline in global deliveries in the third quarter as sales in China fell by a quarter. Stellantis said third-quarter shipments fell 1%, affected by a summer production shutdown in North America.

European shipments at Stellantis rose 10%, helped partly by vehicles from Chinese partner Leapmotor.

Both European and Chinese manufacturers are using the Paris show to launch new models. Stellantis unveiled an electric version of Citroen's 2CV, while Volkswagen's electric Polo draws on the Golf's 1980s design.

"We cannot build our future on export profits alone. Our European businesses must be profitable, resilient and competitive," Blume said. "We must secure Europe's industrial base."

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