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Geopolitical tensions may bring military production to Born as VDL Nedcar's new course.

The future of the famous VDL Nedcar car factory in Born, known for the production of iconic models such as Dafjes, Volvos, Smarts, Mitsubishis and Minis, may be on the eve of a radical transformation. In the shadow of increasing geopolitical tensions and the urgent European need for military equipment, the Dutch government may consider converting the factory into a production site for military vehicles. Outgoing Minister of Defense Kajsa Ollongren, supported by European funding, is not unsympathetic to the idea.

The discussion surrounding the transformation of VDL Nedcar comes at a time when, despite efforts, the Netherlands has not yet achieved the NATO standard of 2 percent of GNP for defense expenditure. Ollongren, who has been working hard to achieve this standard for a long time, emphasizes the complexity of the current situation. There is a race for equipment within the NATO countries, with the Netherlands also trying to supply its share. All this is taking place at a time when support for Ukraine, which falls outside national defense spending, is crucial for European security.

VDL Defense Technologies specializes in engineering and production of systems, assemblies and mechanical parts for the defense industry. Processing armor steel to military standards, vehicle maintenance and the production of systems for tracked and wheeled vehicles are just a few examples of the activities.

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Kajsa Ollongren
Outgoing Minister of Defense Kajsa Ollongren

When asked for a response, Ollongren says that there is a particular need for ammunition, that current foreign suppliers are increasing their capacity and opening new production lines. In a interview with BNR's Big Five, Ollongren expressed her enthusiasm for the potential of VDL Nedcar as a production location for military vehicles. “That will of course be fastest if you can connect with what is already there,” the minister said. She emphasized the willingness to keep all options open and the ongoing discussions with the Ministry of Economic Affairs and Climate and involved parties.

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The possible transformation of VDL Nedcar in Born into a production facility for military equipment is not only related to the strategic necessity due to the current geopolitical tensions, but also to an urgent need to retain high-quality workers. Anton Iken, Senior Logistics at the Ministry of Defense, emphasizes the urgency of this situation in response to our article. According to him, the idea of ​​converting the factory to the production of military vehicles is not only logical, but also something that needs to be developed and implemented urgently.

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Iken's concern is the potential loss of thousands of qualified workers who could find work elsewhere if action is not taken quickly. “There is a need for haste,” says Iken, pointing out the need to act expeditiously before VDL Nedcar's valuable employees transfer to other sectors. 

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The possible conversion of VDL Nedcar to a factory for defense equipment would not only represent a strategic step in strengthening European defense capabilities, but also provide employment for the highly qualified workforce that has been involved in the production of civilian vehicles for decades. With the production of military vehicles, drones and ammunition, the factory could play a new role in the European defense strategy.

This development comes at a time when the European security situation is rapidly deteriorating and demand for advanced defense equipment is increasing. Maintaining production capacity and employment in Born would not only be economically important for the region, but also contribute to national and European security. As conversations continue, the question remains how quickly and in what form this transformation can become a reality.

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VDL

VDL companies have been working in supplies for military end users since their inception. The growth and development of our group of companies prompted us to form a central cluster at the beginning of 2000. The aim of this cluster is to represent all the companies of the VDL Group in the military market. From our classic role as a supplier, we started supplying (armor) steel parts and sub-assemblies that were welded, cut or set together at VDL under specific standards.

This role puts VDL Defense Technologies in the position of key supplier to various renowned OEMs in the military and security industry. In the dynamic environment and with the experience gained, VDL Defense Technologies has the vision to develop from classic 'Tier-2' to 'Tier-1' supplier as a system integrator. In addition to expertise in production (techniques), this creates an impetus for conceptual design, validation and after-sales (ILS).

VDL Defense Technologies is a separate business unit and operates from VDL Bus Chassis BV.

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