He argued the current tariff regime has restored competitiveness for electric vehicles (EVs), but leaves plug-in hybrids at a significant advantage. Where it's not working is with the plug-in hybrids." However, those measures don't currently apply to plug-in hybrids. Plug-in hybrids have become increasingly important in Europe because they help manufacturers meet increasingly strict fleet CO2 emissions targets while also qualifying for incentives in several markets. However, he ruled out allowing Chinese manufacturers to use Volkswagen's under-utilised European factories, unlike rivals Stellantis and Ford, which have entered into manufacturing partnerships with Chinese brands.