VW CEO Blume Urges New Coalition Government for Strategic Economic Reforms

The Volkswagen Group is facing significant challenges in the current economic climate, prompting CEO Oliver Blume to call for urgent reforms from the newly formed Schwarz-Rot coalition government in Germany. Blume emphasized the need for a comprehensive strategy to revitalize the German automotive industry, which has been struggling in recent years.

In an address highlighting the gravity of the situation, Blume pointed out that the existing conditions for the automotive sector are inadequate, necessitating a thorough reassessment and strategic overhaul. He indicated that a cohesive plan focusing on research and development, alongside reduced bureaucracy and regulatory constraints, is essential for the industry's recovery.

"To regain our former economic strength and ensure competitiveness and prosperity, we need a clear political impetus for Germany as an industrial location," he asserted. Blume expressed confidence in the capabilities and expertise available within the country, suggesting that with the right direction, the automotive sector can once again thrive.

Volkswagen, which employs approximately 680,000 people globally, is already witnessing positive trends. The delivery of fully electric vehicles in Europe surged from 70,000 in early 2025 to 150,000, reflecting a growing demand and the company's commitment to transitioning towards sustainable mobility.

Moreover, the company has embarked on a billion-euro restructuring initiative aimed at streamlining operations and enhancing efficiency. Blume believes that with a robust plan in place, Volkswagen is poised for a significant turnaround.

However, the CEO's comments resonate with a broader call among industry leaders for the government to take decisive action. As the automotive sector grapples with various pressures, including rising energy costs and increasing competition from electric vehicle manufacturers, the need for supportive governmental policies has never been more urgent.

Blume's analysis of the economic landscape underscores the challenges faced not only by Volkswagen but the entire automotive industry in Germany. His call for a master plan is a reflection of the sentiment among many in the sector who believe that without strategic interventions, the future of Germany's automotive legacy could be at risk.

As discussions around the new coalition government's agenda continue, the automotive industry is watching closely to see how policymakers will respond to these pressing demands. The outcomes of these negotiations could have lasting implications for the industry's health and Germany's economic future.