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Volkswagen opens doors for arms opportunity
(MENAFN) German automaker Volkswagen is open to manufacturing weapons and military equipment, CEO Oliver Blume revealed, as the European Union plans to invest up to $870 billion in its defense sector.
Volkswagen, which has faced declining sales and profits, announced plant closures and mass layoffs in Germany for the first time last year. The country's economic downturn, with a 0.3% contraction in 2023 and minimal growth in 2024, has led to recession—partly due to the loss of cheap Russian energy following Ukraine-related sanctions.
In an interview with German state broadcaster NDR on Tuesday, Blume stated that Volkswagen is actively evaluating opportunities within the defense industry. He confirmed that the company is considering repurposing some of its factories for military production, saying, “We are fundamentally open to such topics.”
Germany’s largest arms manufacturer, Rheinmetall, has expressed support for the idea. CEO Armin Papperger suggested that Volkswagen’s Osnabrück facility would be well-suited for conversion to military production.
Volkswagen has a historical connection to military manufacturing, having produced vehicles for Nazi Germany during World War II, including the Kübelwagen transporter, the amphibious Schwimmwagen, and components for the V-1 flying bomb.
The EU has intensified its military expansion following criticism from U.S. President Donald Trump, who accused European NATO members of failing to meet their defense spending obligations. In response, European Commission President Ursula von der Leyen introduced the ReArm Europe initiative, which could allocate €800 billion ($870 billion) to the defense industry over the next four years.
The announcement boosted the stock prices of Europe’s largest arms manufacturers, but the plan has faced opposition from Dutch lawmakers, who cite financial concerns.
Meanwhile, Moscow has strongly criticized the EU’s militarization efforts, warning that they are primarily aimed at Russia. This initiative comes as Russia and the U.S. engage in negotiations to resolve the Ukraine conflict, even as EU leaders continue to pledge military aid to Kiev.
Volkswagen, which has faced declining sales and profits, announced plant closures and mass layoffs in Germany for the first time last year. The country's economic downturn, with a 0.3% contraction in 2023 and minimal growth in 2024, has led to recession—partly due to the loss of cheap Russian energy following Ukraine-related sanctions.
In an interview with German state broadcaster NDR on Tuesday, Blume stated that Volkswagen is actively evaluating opportunities within the defense industry. He confirmed that the company is considering repurposing some of its factories for military production, saying, “We are fundamentally open to such topics.”
Germany’s largest arms manufacturer, Rheinmetall, has expressed support for the idea. CEO Armin Papperger suggested that Volkswagen’s Osnabrück facility would be well-suited for conversion to military production.
Volkswagen has a historical connection to military manufacturing, having produced vehicles for Nazi Germany during World War II, including the Kübelwagen transporter, the amphibious Schwimmwagen, and components for the V-1 flying bomb.
The EU has intensified its military expansion following criticism from U.S. President Donald Trump, who accused European NATO members of failing to meet their defense spending obligations. In response, European Commission President Ursula von der Leyen introduced the ReArm Europe initiative, which could allocate €800 billion ($870 billion) to the defense industry over the next four years.
The announcement boosted the stock prices of Europe’s largest arms manufacturers, but the plan has faced opposition from Dutch lawmakers, who cite financial concerns.
Meanwhile, Moscow has strongly criticized the EU’s militarization efforts, warning that they are primarily aimed at Russia. This initiative comes as Russia and the U.S. engage in negotiations to resolve the Ukraine conflict, even as EU leaders continue to pledge military aid to Kiev.
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