Volkswagen says it is ready to produce military vehicles

Volkswagen is open to the possibility of producing military vehicles for the German army, said Oliver Blume, CEO of Volkswagen Group.

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As reported by The Telegraph, although the company has not yet received official requests, the management is ready to consider such projects. Blume said that in the current geopolitical situation, Europe needs to increase its defence spending and if there is a need for military vehicles, VW is ready to evaluate production possibilities.

Blume's comments come against the backdrop of Germany's announced rearmament, prompted by fears that the US, led by Donald Trump, will reduce or withdraw military support for Europe. This has prompted major manufacturers including Rheinmetall and KNDS Group to convert auto parts plants to make weapons.

Economists surveyed by The Telegraph believe that car companies are able to partially switch to military production without having to build new factories. The fact is that car exports from Germany have halved from their peak before the COVID-19 pandemic. The factories are now not operating at full capacity.

Sander Tordoir, chief economist at the Centre for European Reform, said the production of military vehicles could become a "new line of business" for struggling carmakers. He believes companies such as Volkswagen could make civilian cars and military vehicles at the same time, as the likely relaxation of budget rules and the introduction of government incentives in Germany are unlikely to allow factories to reach full capacity again.

Source: The Telegraph