
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
Israel's ban on unsupervised reporters in Gaza causes strategic harm to legitimacy - 2
Home Remodel Administrations: Change Your Residing Space - 3
Ergonomic Office Seats for Work spaces - 4
To fix a patient's irregular heartbeat, doctors first tested its digital 'twin' - 5
Warnings rise for U.S. as severe flu strain causes outbreaks in Canada, U.K.
Doomed SpaceX Starlink satellite photographed from orbit
What exactly is the Upside Down in 'Stranger Things'? The wormhole revelation, explained.
Instructions to Warmly greet Certainty and Appeal
Artemis II astronauts arrive in Florida to prepare for launch to the moon
From record warming to rusting rivers, 2025 Arctic Report Card shows a region transforming faster than expected
Is relief in sight? Flu season still brutal but cases are declining.
Germany's Pistorius: NATO protects Europe from Iranian missiles
Authentic Urban areas: Rich Legacy and Lively Societies
The Best Cell phone Brands for Tech Lovers












