German automobile giant Volkswagen is considering the possibility of joining the defense industry, using its production facilities to create military equipment. This decision is associated with a decrease in car exports and the need to adapt to changes in the global economy.
The company's CEO Oliver Blume announced such plans, emphasizing that Volkswagen is not currently conducting specific negotiations, but is ready to study the possibility of producing military vehicles. According to the company's management, the situation on the global market forces it to look for new directions for development.
One of the main reasons for the potential re-profiling is a sharp decrease in exports of German cars. In 2019, 15.1 million cars were sold in the EU countries, and now this figure has fallen to 10.6 million. Total car exports from Germany have halved, which has negatively affected the company's financial results.
Another challenge for the German auto industry has been increased competition from China. Chinese manufacturers have significantly increased their exports and are now the largest suppliers of cars in the world. This has complicated the position of traditional European brands, forcing them to adapt to new market conditions.
An additional factor is the decline in demand, which is why many Volkswagen plants are not operating at full capacity. This opens up the opportunity to reorient production, in particular to military equipment. A similar step has already been taken by such German companies as Rheinmetall and KNDS Group, which have partially converted their enterprises for defense orders.
Despite the fact that Volkswagen is currently focused on the development of electric vehicles, experts believe that cooperation with the defense industry could become a new promising direction for the company. In addition, the strengthening of US customs policy and global instability may force the automaker to look for alternative markets and development paths in the coming years.
e-finance.com.ua