Volkswagen Explores Investments in Defense Sector
Volkswagen Explores Opportunity to Produce Military Equipment for German Military
German automaker Volkswagen is considering the possibility of producing equipment for the German military as Europe increases its defense spending. The CEO of Europe’s largest car manufacturer, Oliver Blume, mentioned that they are exploring the option of manufacturing military vehicles and would need to review past concepts.
With expertise in the automotive industry, Volkswagen is prepared to offer consultancy and advice on military equipment production. Blume highlighted the importance of investing more in defense amidst the geopolitical situation in Germany and Europe, especially with the US potentially reducing its involvement in European affairs.
Blume suggested that initiatives from the defense industry will play a significant role in enhancing security. Despite facing challenges in the automotive sector, including a 15% decrease in operating profits in 2024 due to competition and rising fixed costs, the Volkswagen Group remains a key player in the market. The group, which also includes Audi, Bugatti, Seat, Skoda, and Porsche, reported an operating profit of 19.06 billion euros ($20.7 billion) last year.
