“Volkswagen ready to manufacture equipment for the German armyVolkswagen is considering the possibility of producing equipment for the German army due to instability in relations between
Europe and the USA. The company is ready to adapt automobile factories for the production of weapons.”, — write: unn.ua
The chief executive of Europe’s largest carmaker, Oliver Blume, said the company had not yet been approached by potential partners, but was ready to “look at concepts”.
His words coincided with a move towards German rearmament. This was caused by fears that the US might withdraw its military contingent from the country. Manufacturers, including Rheinmetall and KNDS Group, are now set to convert car parts factories to weapons production.
“… given the current geopolitical situation, what we are seeing now in Germany and Europe are absolutely the right decisions, in the sense that we need to invest more to be safe again,” Blume said, answering journalists’ questions.
According to economists, car factories can use their capacity to produce weapons, as Germany’s car exports have halved since their peak before the COVID pandemic.
It is also worth noting that the increased demand caused by the prospect of European rearmament has led to a sharp rise in the shares of German defence companies as they ramp up production.
Supplement
Volkswagen announced a profit reduction in 2024, but hopes for increased profitability in the current period. According to information contained in the report, Volkswagen ultimately earned €12.4 billion, almost 31% less than in 2023.
Significantly lower profits for the company are associated with fierce competition in China.
Tesla also recorded a sharp drop in sales. In Australia, the drop was 70% in February compared to last year. Model 3 electric vehicles showed the largest drop at 81.4%, while the company’s competitors are showing growth.