
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 approves death penalty law for Palestinians convicted of attacks - 2
What we know about Jonathan Ross, the ICE agent who shot and killed Renee Nicole Good in Minneapolis - 3
Outer space conditions hamper sperm's ability to navigate toward an egg - 4
Sentimental tree to shine at Arctic League annual broadcast - 5
Instructions to Perform Fundamental Upkeep on Your Slam 1500.
French high-speed train slams into truck, killing TGV driver
Scientists discover black hole flare with the light of 10 trillion suns
He made a name for himself posting thirst traps on TikTok. Now he's the star of a wildly popular rom-com.
I took my shoes off and went for a barefoot hike. I couldn’t believe what happened next
Find the Effect of Web-based Entertainment on Society: Exploring the Computerized Scene
'No middle ground' for tackling antisemitism after Bondi Beach mass shooting, deputy FM Haskel says
NASA's Artemis astronauts enter final preparations for Moon mission
SpaceX launches Starlink satellites from California on 160th Falcon 9 flight of the year (video)
Anti-war protests held across Israel under wartime gathering limits













