Breaking
DETwo women critically injured in head-on collision on L146CNMao Zedong’s death: West German media evaluates his merits, demerits and historical statusVNZheng Qinwen came back from 0-5 down to defeat Iga Swiatek 7-5, 6-3 in the fourth round of the US OpenCRYPTO-ENMalone Lam Due in Court for $245 Million Bitcoin Fraud Plea HearingINTLBest Labor Day Sales for End-of-Season ShoppingBRTV Brasil broadcasts the second leg of the semi-final of the Brasileirão Feminino Série A2 between Vasco and Atlético-PIESAfD victory in Saxony-Anhalt shakes Friedrich Merz's coalition in GermanyDEElection results in Saxony-Anhalt, Trump's Falklands statement and police operationsITTurkey accelerates on renewables but remains dependent on coalESThe Government will appear in the criminal case for the massive entry of migrants to CeutaDETwo women critically injured in head-on collision on L146CNMao Zedong’s death: West German media evaluates his merits, demerits and historical statusVNZheng Qinwen came back from 0-5 down to defeat Iga Swiatek 7-5, 6-3 in the fourth round of the US OpenCRYPTO-ENMalone Lam Due in Court for $245 Million Bitcoin Fraud Plea HearingINTLBest Labor Day Sales for End-of-Season ShoppingBRTV Brasil broadcasts the second leg of the semi-final of the Brasileirão Feminino Série A2 between Vasco and Atlético-PIESAfD victory in Saxony-Anhalt shakes Friedrich Merz's coalition in GermanyDEElection results in Saxony-Anhalt, Trump's Falklands statement and police operationsITTurkey accelerates on renewables but remains dependent on coalESThe Government will appear in the criminal case for the massive entry of migrants to Ceuta
BackVolkswagen management visits the Osnabrück plant to announce the start of armaments
Volkswagen management visits the Osnabrück plant to announce the start of armaments
Developing
FAZ41 minutes agoBusiness2 min readGermanyView original

Volkswagen management visits the Osnabrück plant to announce the start of armaments

Quick Look

  • CEO Oliver Blume, Prime Minister Olaf Lies, works council head Daniela Cavallo and IG Metall chairwoman Christiane Benner visited the Osnabrück Volkswagen plant to announce the start of arms production.
  • The move is intended to secure jobs and strengthen Germany's defense capability, although the military business cannot replace all the jobs lost in the auto industry.

AI-generated summary

Why It Matters

The Volkswagen factory in Osnabrück, formerly the Karmann factory, is about to be converted into armaments production as part of the discussion about Germany's defense capability and structural changes in the auto industry.

Font size

The small car factory in Osnabrück is currently getting more attention than it has in a long time. On Monday, the grandees of the Volkswagen Group made a big appearance there: CEO Oliver Blume was there, as was Lower Saxony's Prime Minister Olaf Lies (SPD) and works council leader Daniela Cavallo. Even IG Metall chairwoman Christiane Benner came over. Last week, everyone on the VW supervisory board was on the verge of a huge escalation. Now they appeared side by side again in Osnabrück - after all, the aim was to announce that many jobs had been saved.

In fact, the entry of the former Karmann factory into arms production is a significant step. The conversion is symbolic because there has long been discussion about how Germany can become more capable of defending itself and what role the automotive industry can play in this. Manufacturers and suppliers are preparing for a time of fiercer competition and lower production figures, and tens of thousands of employees will have to look for new jobs. The defense industry can be part of the solution because it needs a lot of qualified personnel.

Despite all the optimism, it should also be clear: the military business will not cover all the jobs lost in the auto industry, and it does not offer the same framework conditions. Long-term planned vehicle projects in the auto industry are hardly comparable to the cycles in the security and defense industry. There are also still reservations about militarization - especially in Osnabrück, where the Peace of Westphalia was concluded in 1648. In view of the danger situation in Europe, pragmatism prevails: starting armaments strengthens security and provides perspectives at a time when the economy needs new impulses.

What to Watch

AI outlook — possibilities, not facts

  • The start of armaments at the Osnabrück Volkswagen plant will show concrete production starts within the next few months.

    Likely · Within months

Open Questions

  • Exactly how many jobs should be secured through the introduction of armaments?
  • What specific military equipment should be produced in Osnabrück?
  • How long will the renovation of the factory take?
  • What investments are necessary for the conversion?

Related Topics

This article was originally published by FAZ.

Related Stories

Dax remains almost unchanged at 25,998 points - Labor Day in the USA dampens expectations of price movements
Developing·

Dax remains almost unchanged at 25,998 points - Labor Day in the USA dampens expectations of price movements

The Dax was trading almost unchanged at 25,998 points on Monday afternoon. Due to Labor Day in the USA, the stock exchanges there will remain closed, which means that no major movements are expected on the Dax. After three days of losses at the beginning of the week, the index stabilized and held the 26,000 point mark for two days. Investors are watching oil prices with concern in view of new attacks in the Middle East.

Handelsblatt
1 min read
Ifo President Fuest warns of economic disadvantages caused by populist parties in East Germany
Developing·

Ifo President Fuest warns of economic disadvantages caused by populist parties in East Germany

Ifo President Clemens Fuest warns that the strength of populist parties such as AfD, Left and BSW in eastern German states could lead to falling business investment. He criticizes the state financial equalization, which shifts the costs of bad politics onto the community, and at the same time emphasizes the democratic right of voters to decide on economic decline.

Handelsblatt
2 min read
More on this topicVolkswagen