Volkswagen to Sell Osnabrück Plant, Which Will Switch to Making Defence Equipment
Struggling automaker Volkswagen has reached a preliminary agreement to sell its Osnabrück factory in Lower Saxony to the state government and Israeli investor Aurelius Capital. From mid-2027, the plant is expected to begin producing components for Israeli defence firm Rafael Advanced Defence Systems.
German carmaker Volkswagen, which has been facing financial difficulties, has struck a preliminary deal to sell its Osnabrück factory in the state of Lower Saxony. The buyers are the Lower Saxony state government together with Israeli investor Aurelius Capital.
From Cars to Defence Equipment
The Osnabrück plant currently produces cars, but under the agreement its purpose will change significantly. Starting from mid-2027, the factory is expected to begin manufacturing equipment for Rafael Advanced Defence Systems, the Israeli company known for developing the Iron Dome missile defence system.
The sale is part of broader restructuring efforts as Volkswagen works to address its financial troubles. The plant's shift away from car production comes as Germany's automotive sector as a whole continues to face challenges, including falling demand and heightened competition.
News of the deal emerged alongside a wider look at the state of the German economy, which has recently seen political upheaval following a historic election win for the far-right AfD party in the state of Saxony-Anhalt.
