Investing.com -- Europe's automotive manufacturers face additional job reductions and factory closures as the industry works to regain competitiveness, according to Hildegard Müller, president of Germany's VDA automotive lobby.

Müller said Wednesday that carmakers including Volkswagen AG and Stellantis NV have dealt with high energy and labor costs, along with bureaucratic obstacles that have weakened their position against competitors. She called for accelerated reforms to reduce damage to the region's industrial sector.

Chinese carmakers are expanding their presence in Europe while costs for electric vehicle production in the region remain elevated. Volkswagen, Europe's largest automaker, plans to discuss doubling job cuts in Germany and closing factories on Thursday.

"The situation in the whole automotive industry is like the discussion in VW," Müller said in an interview with Bloomberg Television. "Not every production location can be there also in the future, so there must be programs for restructuring."

Müller suggested that manufacturers should allow foreign competitors access to their factories as a way to preserve jobs across the industry. "Sharing supply chains still brings people and countries together," she told Bloomberg TV.

The European Union is developing a proposal to reward manufacturers that produce cars locally through Made in Europe provisions. The regulation forms part of the bloc's Industrial Accelerator Act and remains in the legislative process. Chinese manufacturers including Zhejiang Leapmotor Technology Co. and Chery Automobile Co. have already begun adding production capacity in Europe.

"Options for changes have dwindled, but they've become even more urgent," Müller said in a statement.