
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
Russian drone slams into block of flats in deadly wave of strikes across Kyiv - 2
Former United Launch Alliance CEO Tory Bruno joins competitor Blue Origin for national security projects - 3
First Houthi launch toward Israel since war began triggers alerts across the Negev - 4
Eli Lilly weight-loss drug appears to suppress binge-eating signal, small study finds - 5
Why won't NASA's Artemis 2 astronauts land on the moon when they get there?
Why this Iranian island looks like Mars after it rains
Chicago reports first rabies-positive dog in 61 years. What we know.
What will happen if Artemis 2 astronauts get hit by a solar storm during NASA's ambitious moon mission?
Artemis 2 moon rocket gets 'America 250' paint job | Space photo of the day for Dec. 23, 2025
Guaranteeing Quality Medical care with Federal medical care Benefit Plans.
Top 20 Wellbeing and Wellness Applications for a Sound Way of life
Bird flu poses risk of pandemic worse than COVID, France's Institut Pasteur says
Extraordinary Snowboarding Objections All over the Planet
Health Rounds: Regeneron drug wipes out residual multiple myeloma cells in small trial













