
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
U.S. to drop childhood vaccine recommendations as it looks to Denmark, Washington Post reports - 2
RSF attack on Sudan’s South Kordofan kills at least 14, including children - 3
Ukraine proved this drone-killer works. Now, the West is giving it a shot. - 4
Fact Check: Some Bridge Photos Circulating Do NOT Show The Hongqi Bridge That Collapsed In Southwest China Nov. 11, 2025 - 5
Apartment Turned Into Nightmare 'Ice Castle' After Tenant Shut Off Heat Causing Pipes to Burst: VIDEO
'All's Fair,' Ryan Murphy's new show starring Kim Kardashian, hit with scathing reviews: 'A girlboss fever dream'
Latvia seeks emergency UN meeting over Russian missile attack on Lviv
Anger as German family business group opens talks with far-right AfD
Figure out how to Perceive Warnings while Looking for an Auto Collision Lawyer
Etymological Investigation Disclosed: A Survey of \Dominating New Tongues\ Language Learning Application
Display of Netanyahu's severed head 'incites public to murder PM', Likud says in official complaint
Phenomenal Web-based MBA Stages for Proficient Headway
Which Espresso Do You Like Best? Vote
Iranian-backed militias escalate in Iraq, targeting Kurdistan Region president Nechirvan Barzani












