Volkswagen to cut output at Osnabruck plant as convertible demand weakens

Volkswagen will scale back production at its Osnabruck plant in northwestern Germany as demand for convertible vehicles weakens, according to a report by German news agency dpa.

The automaker will extend the plant's summer shutdown by one week in August and introduce additional non-production days afterward, a company spokeswoman said.

Production is expected to run four days a week following the summer break.

Volkswagen attributed the move to the seasonal pattern of demand for convertibles. The Osnabruck plant currently produces only the T-Roc Cabriolet, a segment that typically sees stronger demand in spring and summer before orders decline in the second half of the year.

The decision adds to uncertainty surrounding the future of the site, which employs about 2,000 people.

The Volkswagen Group Works Council said earlier plans to maintain T-Roc Cabriolet production volumes through September 2027 were no longer realistic.

Production of Porsche models at the Osnabruck site ended last year.

A works council spokesman said work at the facility was "visibly running out" and urged management to provide employees with a clear plan for the plant's future.

Volkswagen said it is examining "sustainable perspectives" for the site after current production ends and remains in contact with potential partners.

The company also confirmed it is holding talks with defense firms about the future of the facility, following reports in international media.

Israeli defense contractor Rafael Advanced Defense Systems is reportedly among the companies interested in the site, although no agreement has been reached.

German arms maker Rheinmetall, which had previously expressed interest, has withdrawn from the process.

A decision on the plant's future is expected by the end of the year, according to dpa.