Volkswagen’s brand is seen on the buyer middle of the carmaker’s headquarters in Wolfsburg, Germany, Nov. 21, 2025. AFP-Yonhap
Volkswagen has made it clear that it has no involvement within the ongoing competitors between shipbuilders from Korea and Germany to safe an order for 12 patrol submarines for the Canadian navy, valued at 60 billion Canadian {dollars} ($43 billion).
The carmaker particularly denied any cooperation with TKMS or any intent to assist the German shipbuilder win the bid.
“We wish to make clear our place and forestall our funding in Canada’s battery plant from being misinterpreted as an try to assist TKMS win the submarine contract,” Volkswagen’s German headquarters advised The Korea Occasions Monday in an e-mail despatched by way of its native PR company.
“Volkswagen Group’s funding within the Ontario battery plant is an unbiased choice made as a part of the group’s electrification technique.”
The assertion got here after it was revealed that Ottawa referenced Volkswagen’s deliberate funding when making an attempt to steer Seoul to have Hyundai Motor put money into Canada’s automotive trade in change for the huge submarine contract.
Presidential chief of workers Kang Hoon-sik confirmed earlier this month that Canadian Business Minister Melanie Joly had requested Hyundai Motor to speculate to “offset” the submarine buy. In response to Kang, Joly advised him, “Germany’s Volkswagen is open to our request.”
Rumors had additionally circulated in Germany about potential collaboration between TKMS and Volkswagen on marine propulsion techniques, fueling investor optimism in regards to the carmaker’s doable further funding in Canada.
As Volkswagen expressed clear discomfort over the hypothesis of its involvement, expectations are rising that Korea’s Hanwha Ocean consortium could have gained an edge over the competitors.
Hyundai Motor, which has no manufacturing amenities in Canada, has neither confirmed nor denied the potential of investing within the North American nation’s automotive sector.
“We have now nothing to say about this concern in the intervening time,” a Hyundai Motor official mentioned.
Nonetheless, visits to Canada later this month by senior officers from Hyundai Motor, Hanwha Ocean and the federal government are bolstering prospects that Korea could safe the order, which might mark the biggest single protection export contract within the nation’s historical past, if profitable.
Though Hyundai Motor faces challenges investing in Canada because of U.S. tariffs on vehicles imported from its northern neighbor, the Korean authorities and ruling social gathering have signaled their intention to supply incentives to encourage the carmaker’s participation within the submarine mission, which has now develop into a government-to-government initiative.
“The Canadian submarine bid is a key process for the Lee Jae Myung administration as Korea seeks to develop into one of many world’s 4 largest protection exporters,” Rep. Kim Byung-joo of the ruling Democratic Occasion of Korea mentioned Monday at a discussion board.
“Since this can be a pan-government mission that might create important ripple results throughout industries and strengthen world safety, civilians, the federal government and the navy ought to work collectively and do their utmost.”
Prime Minister Kim Min-seok additionally mentioned final month that he advised Canadian Prime Minister Mark Carney, “Your counterpart isn’t Hanwha however Korea as a complete,” throughout Carney’s go to final October to Hanwha Ocean’s shipyard on Geoje Island, South Gyeongsang Province.
