
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
10 Demonstrated Tips to Boost Your New Android Cell phone: A Thorough Aide - 2
Why the UAE has incurred the wrath of Somalia - 3
German hauliers warn soaring energy prices may soon impact consumers - 4
The Solution to Flexibility: Developing Internal Fortitude Notwithstanding Misfortune - 5
Astrophotographer captures rare footage of the Hubble Telescope crossing the sun (video)
Kobe Bryant called this WNBA star the 'Gold Mamba.' She turned his advice to her into a tattoo.
SpaceX launches Starlink missions in dual-coast spaceflight doubleheader (videos)
Watch Rocket Lab launch Japanese technology-demonstrating satellite to orbit tonight
Peruvian ex-President Martin Vizcarra sentenced to 14 years in prison
Poland identifies two Ukrainian suspects in railway sabotage blast
One spent $20 on candy. Another paid $700 for a custom costume. Here's how Halloween costs stacked up this year.
Mexican Woman Accused of Assaulting Partner With Belt After He Refused Sex, Police Say
Little Italy Mercato brings fresh food and community to downtown San Diego
Study casts doubt on potential for life on Jupiter's moon Europa













