Volkswagen Reprofiles Osnabrück Plant for Defense Production

Volkswagen's plant in Osnabrück will become the first automotive facility in Germany repurposed for the defense industry. The federal state of Lower Saxony and investor Aurelius Capital have agreed on the terms for the acquisition of Volkswagen Osnabrück GmbH, where the private investor will become the majority shareholder. After the completion of vehicle production in 2027, the facilities will be transformed into a center for security and defense solutions. The first project will involve the production of air defense systems from the Israeli company Rafael, known for developing the "Iron Dome" system. The agreement guarantees long-term employment for nearly 1,400 of the 1,800 workers at the plant. Previously, there were reports of Rafael's intention to acquire the Volkswagen plant in Osnabrück amid the restructuring of the German automaker's business. However, the sale was threatened due to criticism from the Qatar Sovereign Fund, the third-largest shareholder of Volkswagen.