
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
Analysis-From 'Icarus bug' to flawed panels: Airbus counts cost of relying on single model - 2
Top 20 Wellbeing and Wellness Applications for a Sound Way of life - 3
Deadly Switzerland ski resort fire was likely started by sparklers attached to champagne bottles, officials say - 4
Four new luxury hotel openings in Italy you need to know about - 5
Simple Consideration Plants for Home and Office: An Aide
Hundreds of Intact Dinosaur Eggs Emerge From 72-Million-Year Time Capsule
Man Charged for Stealing ‘Incredibly Precious’ 286-Year-Old Violin, Worth More Than $200,000, from a Tavern
From blowouts to big interiors, ‘Tuscan Mom’ style is Gen Z’s answer to beige burnout
First part of major new German-Danish tunnel cleared for lowering
Scientists may be overestimating the amount of microplastics in the environment – and the culprit is lab gloves
How a Middle East War Becomes a Retail Price Hike
Full Supreme Court to hear challenge to Judicial Selection Committee law
Which Startup's Innovation Could Reform Medical care?
Ministry: New German petrol price regulation takes effect on April 1













