This thought by Volkswagen comes at a time when Germany themselves pivot toward greater rearmament…
Now as if the world can’t stop itself hurtling back to the 1930s any faster, it was recently floated that Volkswagen might go back into making military equipment again. This development comes as Europe’s defence sector experiences renewed growth, in response to increased military spending across the continent from the geopolitical mess the world is currently embroiled in…
Volkswagen Group CEO Oliver Blume has recently stated during company’s annual media conference that while the company hasn’t been formally approached by potential partners, the automaker is open to “look at the concepts” regarding potential defence-related projects. This openness emerges as Germany pivots toward rearmament — a shift accelerated by concerns that the United States may be reducing its support for European defence initiatives.
In response to these changing dynamics, manufacturers including Rheinmetall and KNDS Group have also already begun converting automotive parts factories to weapons production facilities, signalling a broader industrial transformation.
Rheinmetall CEO Armin Papperger has recently specifically identified Volkswagen’s Osnabrueck factory as a “very suitable” candidate for military production conversion. During a press briefing where he projected strong 2025 sales growth, Papperger explained that while Rheinmetall could further repurpose its own automotive facilities, acquiring sites from carmakers under favourable conditions remained a viable strategy.
This development follows Volkswagen’s December announcement exploring alternative futures for the Osnabrueck site — potentially including a sale that would both protect workers and reduce restructuring costs for the automaker.
Rheinmetall had previously initiated the conversion of two automotive sites to defence equipment manufacturing, with similar transformations possible at additional locations. This transition is simultaneously absorbing workers from Germany’s struggling automotive sector, potentially helping to revitalise Europe’s largest economy after two consecutive years of contraction.
Despite maintaining profitability through 2024, Volkswagen faces significant challenges ahead, including potential impacts from US tariffs against Mexico and Canada, plus the threat of additional duties on European-manufactured vehicles. So while the company’s potential expansion into defence manufacturing inevitably raises historical considerations, it may represent a pragmatic strategy for ensuring the company’s future viability in an increasingly uncertain global market.
Volkswagen’s history with military vehicles dates back to World War 2. Following the war, they produced the Type 181 for the West German Army, later marketed as “The Thing” when exported to civilian markets in the UK and US.
And while Volkswagen themselves may have not been in the military business for over half a century, it is worth nevertheless noting that the larger conglomerate does already currently maintains connections to the defence industry through an existing arrangement between MAN Truck & Bus and Rheinmetall AG for the development of military vehicles.
