
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
The Hybrid Volkswagen ID. ERA 9X Will Become the Brand’s New Flagship in China - 2
Congolese rape survivors search in vain for medicine after USAID cuts - 3
Egypt's cafés and shops forced to close early due to Iran war - 4
Finding Europe's Head Traveler Objections: An Excursion Through Famous Attractions - 5
21 Things You Ought to Never Share with Your Childless Companion
Support Your Investment funds with These Individual accounting Thoughts
Interstellar comet 3I/ATLAS' journey through our solar system, in photos
Mysterious bright blue cosmic blasts triggered by black holes shredding stars, scientists say. 'It's definitely not just an exploding star.'
Telescope in Chile captures stunning new picture of a cosmic butterfly
The Most Vital Crossroads in Olympic History
Everything you should know before booking a trip to Spain
3 astronauts settle into their new life in orbit | On the International Space Station this week Dec. 1-5, 2025
The Best Business visionaries Under 30
The Universe of Impeccable Pearls: A Manual for Valuable Gems













