Volkswagen to sell Osnabrück plant to state and Aurelius Capital for defense production
Crisis-hit Volkswagen has reached a preliminary agreement to transfer its Lower Saxony facility to the state government and Israeli investor Aurelius Capital. Equipment manufacturing for Rafael Advanced Defence Systems is expected to begin in mid-2027.
Volkswagen's Osnabrück plant in Lower Saxony is undergoing an operational transition. The company struck a preliminary deal on September 6 to sell the facility to the state government and Israeli investor Aurelius Capital. From mid-2027, the factory will produce equipment for Rafael Advanced Defence Systems, which develops the Iron Dome missile defense system. The German government confirmed it agreed to take ownership of the site under the terms of the agreement. Officials stated this decision involves significant infrastructure reallocation within Lower Saxony. The state now holds a stake in the facility alongside Aurelius Capital. Volkswagen plans to close the former automobile manufacturing lines as part of the restructuring process. This transaction marks a shift from commercial vehicle production to military hardware manufacturing.
