
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
Medtronic has 'significant firepower' for multiple acquisitions, executives say - 2
Chief of Staff Zamir warns IDF will collapse due to lack of manpower, raises 'ten red flags' - 3
Purchases of iPhone 17 Pro soar across Gaza amid 'limited' humanitarian aid - 4
How to get rid of your Christmas tree — and the 1 thing to never, ever do with it - 5
HR exec caught on Coldplay 'kiss cam' with boss finally breaks her silence: 'I made a bad decision and had a couple of High Noons'
See the famous winged horse Pegasus fly in the autumn night sky
A Manual for Pick High Evaluated Food Conveyance Administrations In Significant Urban communities For 2024
A photographer finds thousands of dinosaur footprints near Italian Winter Olympic venue
Big majority in Germany call Berlin's efforts on gas prices too weak
The last penny was pressed by the U.S. Mint in Philadelphia today. Could the nickel and dime be next?
New trailer for 'Bridgerton' Season 4 teases Benedict's love story: Watch it here
The biggest black hole breakthroughs of 2025
A few Exemplary Chinese Dishes, Which Are Famous Around the world
Material of Innovativeness: A Survey of \Releasing Your Imaginative Potential\ Online Workmanship Course












