Volkswagen proposes converting Osnabrück plant to defence production
A preliminary agreement would shift Volkswagen’s Lower Saxony factory from car manufacturing to defence equipment production for Rafael Advanced Defence Systems from mid-2027.
Volkswagen has reached a preliminary agreement to sell its Osnabrück plant in Lower Saxony to the state government and Israeli investor Aurelius Capital, according to France 24 International.
The proposed transaction would move the iconic factory away from car production and towards defence manufacturing. The plant is expected to begin producing equipment for Rafael Advanced Defence Systems from mid-2027.
The source does not specify what equipment would be made, nor does it indicate that the facility would produce Iron Dome missiles or complete systems. Rafael is associated with the Iron Dome missile-defence system.
The agreement remains preliminary. Transaction terms and the precise role of the Lower Saxony government have not been disclosed, and the expected production start is not guaranteed.
The proposed conversion comes as crisis-hit Volkswagen faces broader economic pressures in Germany. France 24 also reported separately on the Alternative for Germany’s historic election result in Saxony-Anhalt.
