
Struggling German carmaker Volkswagen is in talks with defence firms to repurpose a plant in northern Germany for the production of military transport equipment, the firm's boss said Friday.
Europe's biggest auto manufacturer is battling a crisis due to factors ranging from a stuttering shift to electric cars and fierce Chinese competition, and the 10-brand Volkswagen Group is in the process of cutting 50,000 jobs by 2030.
As part of the savings plans, car production is due to end at a factory in the city of Osnabrueck, and the group has been exploring other uses for it.
"We are in contact with various defence companies," Volkswagen Group CEO Oliver Blume said at a congress organised by the FAZ newspaper in Frankfurt.
"This could also be a solution for Osnabrueck," he added.
The Financial Times reported this week Volkswagen is in talks with Israel's Rafael Advanced Defence Systems to switch production at VW's Osnabrueck plant to make components for the Iron Dome air defence system, including heavy-duty trucks and electricity generators but not the projectiles themselves.
Volkswagen could benefit from the expansion into the defence sector, which is booming as Europe re-arms. That could help offset losses at its carmaking business, with profits last year at their lowest for almost a decade.
Blume however insisted that Volkswagen was "not concerned with weapons systems".
"The Volkswagen company's activities in the defence sector would rather focus on military transport, because that is our core competence."
Volkswagen's Osnabrueck site currently employs about 2,300 people making the T-Roc Cabriolet as well as the Cayman and Boxster for sister brand Porsche.
The agreement to wind down production there was part of an agreement struck with unions at the end of 2024.
Asked about the FT report earlier this week, a government spokesman declined to comment directly.
But he noted that "the automotive industry is undergoing a transformation and faces intense international competition."
"We naturally welcome initiatives that secure jobs in Germany."
vbw/sr/gv
LATEST POSTS
- 1
Best Amusement Park in Europe: Where Do You Very much want to Visit? - 2
RFK Jr. wants to scrutinize the vaccine schedule – but its safety record is already decades long - 3
Finding Europe's Head Traveler Objections: An Excursion Through Famous Attractions - 4
5 things for parents to know about changes to kids vaccine schedule - 5
Support Your Wellness: 20-Minute Home Exercises That Work
Poland identifies two Ukrainian suspects in railway sabotage blast
Factbox-China's crewed lunar programme eyes astronaut landing by 2030
Turkey’s intel chief lays out country’s vision for Middle East, world
New movies to watch this week: See 'Marty Supreme' in theaters, rent 'Springsteen: Deliver Me from Nowhere,' stream 'Cover-Up' on Netflix
IDF continues counterterrorism operations in Gaza Strip, including destroying terror tunnels
Major railway disruptions persist as Germany braces for more snow
Exposure to neighborhood violence leads some Denver teens to use tobacco and alcohol earlier, new study shows
Charli xcx teases new film ‘The Moment’: What to know about the A24 movie
Geomagnetic storm grounds launch of Mars space weather satellites













