Volkswagen Plans Military Vehicle Production for German Army

Volkswagen is exploring the possibility of producing military vehicles for the German army, according to CEO Oliver Blume. He stated that while no official requests have been made, the company is prepared to consider such projects in light of Europe's increasing defense needs amid geopolitical tensions. This interest aligns with a broader trend of German rearmament, which has seen other manufacturers like Rheinmetall repurpose their facilities for military production. Economists suggest that automotive companies can pivot to military manufacturing without significant new investments, given that many factories are not operating at full capacity. Blume emphasized the necessity for Europe to enhance its defense capabilities, noting that Volkswagen's existing facilities could be utilized for this purpose if needed. The shift towards military production has also resulted in rising stock values for German defense firms as demand increases.