
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
Eli Lilly weight-loss drug appears to suppress binge-eating signal, small study finds - 2
Mississippi Insight for Jan. 11, 2026 - 3
1st-ever disease gene fix, Alzheimer's blood test: 7 medical breakthroughs in 2025 - 4
Trump administration plan to reduce access to some student loans angers nurses, health care groups - 5
Europe could get 42 more days of summer by the year 2100 due to climate change
'War is not over': Detailed diagrams of prisons found in cells of Oct. 7 terrorists
Study casts doubt on potential for life on Jupiter's moon Europa
Parents search for children missing since a volcanic eruption in Colombia 40 years ago
HGV driver recruited others to smuggle migrants
Russia earning billions from Hormuz blockade, German trade body says
Make your choice for the bird that catches your heart!
There are thousands of aligned holes in Peru. Archaeologists now think they know who made them
Sexual violence is being used as a weapon in Sudan's war, doctors group says
Role reversal: Ukraine moves training home and exports the lessons abroad













