Volkswagen plans to sell Osnabrück plant for conversion to defense production

Volkswagen’s Osnabrück car plant is set for a possible transformation into a defense production site, marking the first such conversion of a German auto factory. The company has announced plans to sell the plant to financial investor Aurelius and the state of Lower Saxony.

Volkswagen said the site would gradually become a competence center for security and defense solutions. The stated aim is to preserve the location over the long term. According to the works council, the arrangement would offer a future to nearly 1,400 of the plant’s current 1,800 employees, or about three-quarters of the workforce.

The first anchor project would be cooperation with Israeli defense company Rafael. The company produces air-defense systems, guided missiles and electronic-warfare equipment, and is known for the Iron Dome system. The proposed partnership would initially focus on the possible development and production of components for air-defense systems. Rafael chief executive Joav Tourgeman said the goal was to produce the technology fully in Germany.

The announcement does not complete the sale. Volkswagen said the next steps include defining future responsibilities, setting the economic and organizational structure, and preparing a possible transition. Completion remains subject to final agreements, decisions by the relevant corporate bodies and regulatory review. The report said the article would continue to be updated.

“

Today we are building a long-term industrial partnership with our German partners with the aim of having the technology produced entirely in Germany to protect Germany and Europe.