Tariff Threats Could Drive VW Back into Military Production | Carscoops

      Volkswagen is prepared to provide guidance to other automakers on the production of armored vehicles.

      The tumultuous global situation has prompted both Europe and Germany to enhance their defense capabilities.

      The CEO of Volkswagen stated that they are open to offering advice to other manufacturers regarding armed vehicles.

      Additionally, the VW Group is facing risks from tariffs imposed on Mexico, Canada, and Europe.

      As global tensions escalate, Europe is eager to strengthen its defenses, and Volkswagen appears ready to contribute. This announcement was made during the company's annual media conference in Wolfsburg on Tuesday.

      This development is set against a backdrop of geopolitical turmoil. Following a fallout between US President Trump and Ukrainian President Zelenskyy, and forthcoming talks in Saudi Arabia, the US suspended military assistance and intelligence sharing with Kyiv. Consequently, European leaders have pledged to increase defense expenditures.

      Brussels has launched an ambitious $840 billion initiative to enhance military readiness throughout Europe. Just last week, the European Commission initiated plans for a resource mobilization effort on an unprecedented scale.

      New military contracts could prove vital for European automakers. According to a Bloomberg report, VW CEO Oliver Blume indicated that the company is ready to offer advice to others regarding the design and manufacture of armed vehicles. "We have automotive expertise and are also available to provide advice, but at the moment, everything is completely open," stated Blume.

      While specific discussions have not yet occurred, Volkswagen is already involved in the defense sector through a contract between MAN Truck & Bus and Rheinmetall AG for military vehicle development.

      Although Volkswagen is expected to remain profitable in 2024, the company anticipates a challenging year ahead, potentially impacted by US tariffs on Mexico and Canada, along with the looming threat of additional duties on cars manufactured in Europe.

      Volkswagen’s history with military vehicles dates back to World War II. Following the war, they produced the Type 181 for the West German Army, which was later known as "The Thing" when sold in civilian form in the UK and US.

      Earlier this month, Germany announced a new agreement to increase defense spending by billions of euros. Friedrich Merz, who is likely to be named Germany's next chancellor, expressed his readiness to take necessary measures in light of "recent decisions by the American government," according to BBC News.