KNDS considering takeover of Mercedes, VW plants, Spiegel reports (updated)

Volkswagen AG

14/05/2026 12:03

Adds comments by KNDS, Volkswagen

May 14 (Reuters) - Franco-German tank manufacturer KNDS is in talks with Mercedes-Benz MBGn.DE about taking over the German carmaker's plant in Ludwigsfelde, south of Berlin, Spiegel reported on Thursday.

KEY DETAILS

Mercedes is in talks with KNDS about taking over the plant and some of its around 2,000 employees, Spiegel said

KNDS could initially lease part of the plant before a full takeover and produce its military vehicles in parallel with Mercedes vans

KNDS is also considering a takeover of Volkswagen's VOWG.DE plant in Osnabrueck in western Germany, according to the report

"KNDS is on a growth trajectory and is seeking suitable partner companies for the planned production ramp-up in the defence sector," a KNDS spokesman said, adding that talks with candidates were still ongoing and declining to provide any further details

Mercedes did not immediately respond to a Reuters request for comment, while VW declined to comment on the report

Spiegel reported Mercedes declined to comment, whilst VW stated that it was "in discussions with various market players regarding different options" for Osnabrueck following the end of current production in 2027

Reuters reported at the end of April that Rafael Advanced Defense Systems had signed a letter of intent with VW to acquire the Osnabrueck plant

The companies had declined to comment, but VW CEO Oliver Blume had told investors in a call that the group was in advanced talks with defence companies over the plant

Volkswagen had previously said it wanted to sell or reconfigure the site

 (Reporting and writing by Linda Pasquini; Additional reporting by Matthias Williams; Editing by Joe Bavier)

 ((linda.pasquini@thomsonreuters.com; +48 58 7785261;))