German union calls for swift action to secure Volkswagen

• Reuters

• Published On Jun 11, 2026 at 03:39 PM IST

The company is exploring defence industry partnerships to create new employment opportunities.

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Workers at Volkswagen’s plant in Osnabrueck said on Wednesday they expect swift action from management to secure the future of the site ahead of the scheduled end of production next year.

Osnabrueck and its 2,300 workers face an ‌uncertain future beyond ⁠mid-2027, when ⁠production of Volkswagen’s T-Roc SUV is set to end. The company began eyeing defence deals in 2025 in search of solutions for the site.

But there is still no concept for the next phase of the factory, the IG Metall union and works council said in a statement following a staff assembly.

“The ⁠workforce here ‌stands united and expects management to quickly provide real perspectives for all employees,” works council head Juergen Placke ⁠said in the statement.

Osnabrueck staff would favour allocation of a successor model to keep traditional automotive production running but are also open to contracts for specialised vehicles for third partners, IG Metall said.

Volkswagen said in a statement it continued to assess options for the site, which specialises in small-batch production and special projects.

“With this in mind, ‌the company is in talks with defence industry firms to develop sustainable employment opportunities,” the statement added.

CEO Oliver Blume has repeatedly pitched the ⁠defence sector as a possible lifeline for the group’s underutilised factories amid a slowdown in auto production and a boom in European defence spending.

Talks with German tank maker Rheinmetall over Osnabrueck last year did not result in a deal.

More recently, Israel’s Rafael Advanced Defence Systems has emerged as a potential suitor, according to people familiar with the talks.