
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
Insight: Pills, TikTok, weight-loss apps and the consumer-driven future of GLP-1s - 2
IDF, police arrest eleven for criminal, terror-related activity over weekend - 3
I work with companies to confront addiction in the workplace. The hidden crisis is costing corporate America millions. - 4
Lockheed Martin opens new hypersonic weapons facility - 5
I tried a macho, creatine-loaded cereal “for men.” Did I mention I'm a woman?
6 Agreeable Earphones To Wear
Police arrest 18 as anti-war protests spread across Tel Aviv, Haifa, Jerusalem
Don’t let food poisoning crash your Thanksgiving dinner
6 Nations for Setting up camp
Instructions to Upgrade the Security Elements of Your Kona SUV
Midlife weight gain can start long before menopause – but you can take steps early on to help your body weather the hormonal shift
Activists guilty over Palestine protest breach
Moon fever hits DC as Artemis 2 rocket 'candle' lights up Washington Monument just 1 month before launch (photos)
American tourists left stranded in the Caribbean following flight cancellations after airspace closed for Maduro operation













