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VW holds intensive talks with defence companies, Bild reports

Published by Global Banking & Finance Review

Posted on April 28, 2026

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· Last updated: April 28, 2026

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VW holds intensive talks with defence companies, Bild reports
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Volkswagen in Intensive Talks With Defence Companies Over Osnabrueck Plant

Volkswagen's Strategic Shift at Osnabrueck Plant

By Maria Martinez

Intensive Discussions With Defence Sector

BERLIN, April 28 (Reuters) - Volkswagen VOWG.DE is in intensive talks with defence companies over the future of its Osnabrueck plant in northern Germany, Bild reported on Tuesday, citing an interview with Chief Executive Oliver Blume.

End of Volkswagen Group Production at Osnabrueck

"We will no longer produce Volkswagen Group products in Osnabrueck from 2027 and are therefore in intensive talks with companies in the defence sector," Blume told Bild. "I am very confident that we will make a decision on this this year."

Government Mandate and National Security

Blume said the German government had given a clear mandate to make the country capable of defending itself, adding that "everyone in Germany wants and needs security".

Volkswagen's Potential Contributions

Expertise in Automation and Workforce Qualifications

The Volkswagen chief said the group saw an opportunity to contribute with its expertise in automation and the qualifications of its workforce at Osnabrueck.

Clarification on Military Production

No Weapons Manufacturing

He said, however, Volkswagen would not produce weapons.

Focus on Military Transport Vehicles

"Vehicles for military transport could be one direction. We are not talking about tanks," Blume told Bild.

(Reporting by Maria Martinez; editing by Barbara Lewis)

Key Takeaways

  • Osnabrück site employs about 2,300 people and car production ends by mid‑2027 after T‑Roc Cabriolet ceases, prompting urgent redeployment efforts. (investing.com)
  • VW has unveiled military vehicle prototypes (e.g., MV.1 and MV.2) at a defense trade fair and is exploring partnerships with defence firms—notably including talks with Rafael for air‑defence components—though VW reiterates it will not produce weapons. (marketscreener.com)
  • A final decision on the plant’s future is expected by the end of 2026; successful conversion could preserve thousands of direct and local supply-chain jobs, while failure risks closure and economic impact in Lower Saxony. (marketscreener.com)

References

Frequently Asked Questions

Why is Volkswagen ending production at its Osnabrueck plant?
Volkswagen will stop producing group products at the Osnabrueck plant from 2027 and is seeking new directions for the site.
What type of companies is Volkswagen negotiating with regarding the Osnabrueck plant?
Volkswagen is in intensive talks with companies in the defence sector for the plant's future use.
Will Volkswagen produce weapons at the Osnabrueck plant?
No, Volkswagen will not produce weapons; possible products include vehicles for military transport, but not tanks.
What expertise could Volkswagen offer to the defence industry?
Volkswagen could contribute its automation expertise and the qualifications of its workforce.
When will a decision be made about the plant's new direction?
Volkswagen's CEO expects a decision to be made within the year.

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