Former VW Plant in Germany to Become an Israeli Defense Production Site

After 125 years of car production, Volkswagen’s plant in Osnabrück is set to become a defense-industry site. Israeli investor Aurelius and the state of Lower Saxony plan to take over the facility and turn it into a center for defense production.

The first project would manufacture air-defense systems made by Rafael, the Israeli company behind the Iron Dome. Volkswagen said the main points of the agreement were reached on Monday. Chief Executive Oliver Blume called the deal an important step toward giving the site a new industrial future.

Under the plan, Aurelius, a fund specializing in defense projects, would hold the majority stake, while Lower Saxony would retain a minority interest. The parties said they would negotiate the transaction’s details over the coming months. State Premier Olaf Lies described the agreement as a genuine industrial opportunity for Osnabrück, citing the site’s experience with demanding work and the fundamental change in the security situation.

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Germany and Europe must strengthen their capabilities and become more independent. Lower Saxony wants to help turn that into value creation and secure employment.

Rafael Chief Executive Yoav Tourgeman said the aim was a long-term industrial partnership in which the technology used to protect Germany and Europe would be produced entirely in Germany. “Germany and Europe must strengthen their capabilities and become more independent. Lower Saxony wants to help turn that into value creation and secure employment,” Lies said.

The plant currently employs about 1,800 Volkswagen workers. Works council chief Daniela Cavallo said around 1,200 had received a long-term perspective, while efforts continued to find a solution for the rest of the permanent workforce. IG Metall leader Christiane Benner said the agreement followed sustained work by employees, the state government, the works council and the union. She added: “Today’s step opens opportunities for the site, but it does not release Volkswagen from the task of creating reliable future prospects for the remaining employees.”

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Today’s step opens opportunities for the site, but it does not release Volkswagen from the task of creating reliable future prospects for the remaining employees.