VW chief Blume says no talks with China about plant in Osnabrück

Volkswagen chief executive Oliver Blume has dismissed speculation that the carmaker’s plant in Osnabrück in north-western Germany might be sold to a Chinese manufacturer.

“There are currently no plans or discussions with Chinese manufacturers,” he said at an all-hands meeting in Wolfsburg on Wednesday. According to reports, China’s XPeng Motors is one of several manufacturers said to be interested in acquiring sites in Europe.

Addressing VW workers, Blume defended the VW Group’s intensified cost-cutting efforts. “We still have overcapacity at our plants in Europe and Germany,” he said, according to the group’s statement at the works meeting in Wolfsburg. “We must address this to remain competitive.”

But he added: “Intelligent solutions are important for our plants.”

For the plant in Osnabrück, for example, “we are currently negotiating with companies from the defence industry,” Blume explained.

The aim is to develop employment prospects beyond the end of vehicle production in 2027. “Speculation beyond this and approaches being discussed in the wider community are not on the agenda for us.”

According to industry sources, the Israeli defence contractor Rafael could take over the plant and manufacture components for the “Iron Dome” air defence system there. Reports suggest that the Franco-German defence contractor KNDS is also showing interest. VW, however, has repeatedly ruled out producing weapons.

VW works council chairwoman Daniele Cavallo called at the meeting for an end to the ongoing speculation surrounding the future of VW’s domestic plants.

“The employer side here should also have a keen interest in ensuring that these unspeakable headlines about plant closures finally stop,” she said, according to an intranet post seen by dpa. She argued that the constant discussions were damaging the group’s public image.

Cavallo emphasized that there was no lack of understanding among staff regarding the group’s current crisis. “We as a workforce understand the situation. And we have delivered!” Cavallo referred to the collective bargaining compromise reached in December 2024. “Now it’s the other side’s turn to deliver!”

According to participants, Blume is also said to have assured those present, with regard to the main plant and the group’s headquarters: “Wolfsburg is and will remain the powerhouse of this group.” According to reports, this was met with warm applause from the workforce.