German Auto Companies Repurposing Car Plants for Defense Equipment Production

Rheinmetall is considering using a Volkswagen automobile plant in Osnabrück, Germany, to produce infantry fighting vehicles and other armored vehicles, according to CEO Armin Papperger.

Papperger said the plant’s heavy cranes make it suitable for military production. Volkswagen previously announced plans to reorganize or sell the facility. Rheinmetall and Volkswagen are already working together on military truck production. Papperger noted that major orders, such as for the Lynx infantry fighting vehicle, would be required before committing to new investments.

If the deal proceeds, it would mark the third German automotive plant converted to military use by Rheinmetall. The company has already transformed two of its facilities for ammunition component production. These hybrid plants maintain the ability to produce civilian products while focusing on mechanical parts rather than handling explosives.

Other German defense companies are also repurposing industrial sites. KNDS Deutschland (formerly KMW) is converting the Alstom railcar plant in Görlitz to manufacture armored hulls and components for Leopard 2 tanks, RCH155 artillery, and Boxer combat vehicles.