20:59 - 7.09.2026

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September 7, Fineko/abc.az. German automaker Volkswagen has reached a preliminary agreement to sell its Osnabrueck manufacturing plant to Israeli firm Aurelius Capital and the state government of Lower Saxony.

Following the phase-out of vehicle production in summer 2027, the site will be repurposed for defense manufacturing, marking an unprecedented structural pivot for Europe's largest carmaker. The transition will preserve approximately 1,400 of the 1,800 jobs at the facility.

The initial anchor project will be executed in partnership with Israel's Rafael Advanced Defense Systems—the manufacturer of the Iron Dome, David's Sling, and Arrow systems—to produce missile launchers, heavy trucks, and power generators for German and European air defense capabilities.

Facing margin pressure and heavy competition from Chinese EV manufacturers, Volkswagen is utilizing rising European defense budgets to absorb excess automotive manufacturing capacity across its German network.