
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
6 Useful Home Espresso Machines - 2
Artemis II astronauts channel Apollo 8 with a striking Earthset photo - 3
Qatar, Ireland accuse Israel of using chemical weapons on Palestinians, demand watchdog probe use - 4
Burger King launches 'SpongeBob' menu ahead of film's release. A look at the Bikini Bottom-inspired meal, plus what taste testers are saying. - 5
Creative Style: 10 Architects Reclassifying the Business
Wizz CEO: We’re going to invest $1 b. in Israeli market
Novo Nordisk cuts Wegovy price in South Africa for a second time
Claim that Israel opened 'sewage dam' into Gaza's main river undersells sanitation crisis
Posts falsely claim Malaysian minister to relocate public hospital for temple
IDF says up to 90% of Iran’s weapons industry could be hit within days
Instructions to Pick the Right Tires for Your Slam 1500.
Russia Creates New Military Branch Dedicated To Drone Warfare
Best Pizza Beating: What's Your #1?
Find Serenity: 10 Stunning Setting up camp Areas












