- The fractious global landscape has Europe and Germany looking to increase defenses.
- Volkswagen CEO says they’re open to advising other automakers on armed vehicles.
- The VW Group is also at risk from tariffs imposed against Mexico, Canada and Europe.
With global tensions on the rise, Europe is scrambling to bolster its defenses, and Volkswagen is apparently ready to step up to the plate. The news came during the company’s annual media conference, which was held in Wolfsburg on Tuesday.
The backdrop to this is, of course, a geopolitical mess. After a fallout between US President Trump and Ukrainian President Zelenskyy, coupled with upcoming talks in Saudi Arabia, the US halted military aid and intelligence sharing with Kyiv. In response, European leaders have committed to increase defense spending.
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Brussels, for its part, has rolled out an ambitious $840 billion plan to boost military readiness across Europe. Just last week, the European Commission laid the groundwork for a resource mobilization effort on a scale that would have seemed unimaginable only a few years ago.
Potential new military contracts could be crucial for Europe’s automakers. According to a Bloomberg report, VW CEO Oliver Blume said the company is willing to advise others in the field on the development and production of armed vehicles. “We have automotive expertise and are also available to provide advice, but at the moment, everything is completely open,” Blume said.
It’s understood that concrete discussions are yet to take place. However, Volkswagen already has a hand in the defense industry, with military vehicles being developed under a contract between MAN Truck & Bus and Rheinmetall AG.
Despite remaining profitable in 2024, VW is prepared for a tough year ahead, with the group potentially at the mercy of US tariffs against Mexico and Canada, as well as the threat of further duties levied against European manufactured cars.
Volkswagen’s experience with military vehicles stems back to the Second World War. After WWII, they were involved in producing the Type 181 for the West German Army, which later became known as “The Thing” when it was exported in civilian guise to the UK and US.
Earlier this month, Germany announced a new deal to raise billions of euros in defense spending. Friedrich Merz, the man expected to be announced as Germany’s next chancellor, said he was willing to do whatever it takes in light in light of “recent decisions by the American government,” reports BBC News.
