Volkswagen exploring partnership to manufacture military equipment at German plant

The German automotive giant Volkswagen is in contact with defense companies to repurpose one of its German plants for the production of military transport equipment, its CEO announced on Friday.

In the defense sector, “we have not been active for decades and we have a significant catch-up to do, which is why this could be a solution for Osnabrück (west),” said Oliver Blume, the group’s CEO, at a congress in Frankfurt.

The Wolfsburg group is in discussions with companies “for example in antimissile defense,” added Mr. Blume, without specifying which ones.

By the end of 2024, Volkswagen had announced that the site located in Lower Saxony, which employs 2,300 people, should no longer produce vehicles after mid-2027 for another use of the factory, as part of a massive billion-euro savings plan to restore the brand’s profitability.

“The geopolitical situation has changed” and “action must be taken,” Mr. Blume estimated, which is why the group is in contact with “various arms companies.”

However, the Osnabrück plant would not produce “weapon systems,” clarified the Volkswagen CEO, but rather “military transport equipment” because “that is where our competence lies.”

“This kind of activity could be in line with our values,” he emphasized.

According to an article published by the Financial Times on Tuesday, Volkswagen is in discussions with Rafael Advanced Defence Systems, which designed the Israeli Iron Dome, to produce various components, such as trucks that transport the system’s missiles or electric generators.

When asked by AFP on Wednesday about these potential discussions, a spokesperson simply stated “to date, no final decision or conclusion has been made regarding the future of the site.”