
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
Ghassan Al-Duhaini to replace Abu Shabab as Popular Forces leader in Gaza - 2
Some gifted dogs can learn new toy names by eavesdropping on owners - 3
A mom's viral post is raising the question: Do kids need snacks? Dietitians have answers. - 4
Humpback whale freed by rescuers in Baltic Sea has become stranded again - 5
Instructions to Warmly greet Certainty and Appeal
Doctors looking into hormone therapy as a way to ward off dementia in women
Abbott issues US device correction for some glucose monitors over faulty readings risk
Best Pizza Beating: What's Your #1?
Indoor Drinking Fountains: Famous Home Advancements during the Pandemic
December's overlooked meteor shower peaks next week — will the Ursids surprise us?
Step by step instructions to Deal with Your Time While Chasing after an Internet based Degree
Antivirus Programming for Exhaustive Security
How did Ariana Grande get her Glinda voice? I’m the man behind the magic.
Figuring out the Justification for Separation: To blame and No-Shortcoming













