Volkswagen considering defense industry investments

ISTANBUL

German automaker Volkswagen is exploring opportunities to produce equipment for the German military as Europe ramps up its defense spending.

Oliver Blume, the CEO of Europe’s biggest car manufacturer, said: "There was the option of military vehicles going forward, we would have to look at the concepts we did that in the past."

He said the firm has automotive competence and it is ready to provide consultancy and advice.

In light of the geopolitical situation in Germany and Europe, the right decisions are being made to invest more in order to be safe again, he said, referring to expectations that the US is stepping back its involvement in Europe.

"Initiatives will be brought forward by the defense industry more than anything," he added.

The German firm recently saw issues in its automotive side, including a 15% fall in its operating profits in 2024 compared to the previous year due to rising competition and increases in fixed costs.

The Volkswagen Group, which also includes Audi, Bugatti, Seat, Skoda and Porsche, last year had an operating profit of €19.06 billion ($20.7 billion).

ISTANBUL

German automaker Volkswagen is exploring opportunities to produce equipment for the German military as Europe ramps up its defense spending.

Oliver Blume, the CEO of Europe’s biggest car manufacturer, said: "There was the option of military vehicles going forward, we would have to look at the concepts we did that in the past."

He said the firm has automotive competence and it is ready to provide consultancy and advice.

"Initiatives will be brought forward by the defense industry more than anything," he added.

The German firm recently saw issues in its automotive side, including a 15% fall in its operating profits in 2024 compared to the previous year due to rising competition and increases in fixed costs.

The Volkswagen Group, which also includes Audi, Bugatti, Seat, Skoda and Porsche, last year had an operating profit of €19.06 billion ($20.7 billion).