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Volkswagen agrees to transfer Osnabrück plant for defense production
Volkswagen has reached an agreement to transfer its Osnabrück plant to Israeli private equity firm Aurelius and the state of Lower Saxony. The facility is planned to produce air defense systems and components for Germany and Europe in cooperation with Rafael.
Volkswagen has reached an agreement to transfer its Osnabrück plant in Germany to Israeli private equity firm Aurelius and the state of Lower Saxony. Under the agreement, Aurelius will acquire a majority stake, while the state of Lower Saxony will take a minority stake.
The plant is planned to cooperate with Israel-based air defense systems manufacturer Rafael Advanced Defense Systems. The facility is expected to produce air defense systems and components for Germany and Europe.
The plant will be transformed into a defense solutions center
Aurelius and the state of Lower Saxony plan to transform the facility into a center of expertise for security and defense solutions in the coming years. The planned work with Rafael is also expected to lay the groundwork for new partnerships and projects in the future.
The details of the agreement are expected to be negotiated in the coming months. Two years ago, Volkswagen decided to gradually end vehicle production at the Osnabrück plant by the summer of 2027.
The plan sparked debate in Germany
Volkswagen Chief Executive Oliver Blume announced in March that production of Volkswagen Group vehicles would be halted at Osnabrück from 2027 and that talks were being held with defense companies to convert the plant for military vehicle production.
The plan was criticized by Volkswagen employees, peace activists and opposition parties. Critics argued that the plant should focus exclusively on civilian production.
The Osnabrück Peace Initiative held multiple protests demanding that Volkswagen abandon defense contracts. Germany's Left Party also described the planned cooperation with Rafael as unacceptable, citing its accusations of war crimes and genocide against the Netanyahu government as the basis for its position.
Rafael is expanding its operations across Europe at a time when governments across the continent are increasing their defense spending and procurement.
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