Plans for German factory emerge days after carmaker announced major job cuts
Volkswagen has agreed key terms for the planned sale of one of its German car plants, which is set to be converted into a centre for defence manufacturing following the end of vehicle production next year.
The Osnabrück plant in north-west Germany is expected to be taken over by Israeli investment company Aurelius Capital and the German state of Lower Saxony, with Aurelius holding a majority stake.
Under the plans, the factory will gradually be developed into a manufacturing centre for security and defence equipment.
An initial project is planned in cooperation with Israel’s state-owned Rafael Advanced Defense Systems, the company behind the Iron Dome air-defence system.
Volkswagen said the plans could involve the manufacture of air-defence systems and components for the German and wider European markets.
Vehicle production at Osnabrück is already scheduled to end in 2027 as Volkswagen restructures its European manufacturing operations.
The agreement comes just days after the carmaker approved a major restructuring plan involving 50,000 job cuts across the group.
Around 1,800 people currently work at Osnabrück, with labour representatives saying the proposed new arrangement could secure a future for approximately 1,400 jobs.
The transaction has not yet been completed and remains subject to final agreements, corporate approvals and regulatory reviews.
