
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
Instructions to Pick the Best Album Rates for Your Investment funds - 2
Going on a bad date is a drag. Worse? Ending up as a cautionary tale on TikTok. - 3
Nitty gritty Manual for Picking Agreeable Tennis shoes - 4
Step by step instructions to Protect Your Speculations with Cd Rates - 5
Trump announces 'Patriot Games' with 2 competitors from every state and territory: What we know
Your big brain makes you human – count your neurons when you count your blessings
I'm a hypnotherapist who helps day traders who are losing money. Here's why I think hypnosis works.
Putin critic gets six years in penal colony, vows hunger strike
Brexit's Effect on New York's Ascent as a Main Monetary Center
NATO needs Ukraine's 'adaptation DNA' and an 'HOV lane' for new war tech, top commander says
What's The Friendliest City In The United Kingdom?
4 Family SUVs: Joining Solace and Style
Vote In favor of Your Favored Web-based Venture Stage
Aspirin can prevent a serious pregnancy complication — but too few women get it, new report suggests












