Frankfurt (Germany), 7 September (LaPresse) – Volkswagen, the state of Lower Saxony and the investment group Aurelius Capital have agreed on the key terms for the sale of the Osnabrück plant, which, following the end of car production in 2027, will be gradually converted into a centre of expertise for solutions in the security and defence sectors. Aurelius will become the majority shareholder in the new company, whilst Lower Saxony will hold a stake in the capital. This was announced by Volkswagen, as reported by ZDF. The aim is to secure a long-term industrial future for the site. According to the works council, the agreed solution initially offers prospects for almost 1,400 of the current approximately 1,800 employees, equivalent to around three-quarters of the workforce. Following normal staff turnover and early retirements, the new company is expected to have around 1,200 employees, for whom job security is guaranteed until the end of 2029. Solutions are still being considered for the remainder of the workforce, particularly in the area of technical development. The first major project will be a collaboration with the Israeli defence group Rafael Advanced Defence Systems, best known for the ‘Iron Dome’ missile defence system. The cooperation will focus on the potential production in Osnabrück of air defence systems and components for Germany and Europe, and is expected to pave the way for further partnerships and projects in the sector. Rafael develops and manufactures air defence and missile systems, including the ‘Iron Dome’ and the ‘Iron Beam’ laser system. The group also supplies the Trophy active protection system, which is used on German Leopard tanks. The new company is expected to involve staff in Osnabrück in setting up production and its industrialisation. The conversion marks a turning point for a plant with over 125 years of history in the automotive industry: following the end of production of Porsche models at the end of 2025, only the T-Roc Cabrio is currently produced in Osnabrück. The last unit is expected to roll off the production line in the summer of 2027. However, the sale is not yet finalised. The agreement forms the basis for the next steps, which include defining future responsibilities and the economic and organisational structure, as well as obtaining the necessary approvals from the company’s governing bodies and undergoing checks by the relevant authorities.
Volkswagen: agreement reached on the sale of the Osnabrück plant; it will produce defence equipment
Frankfurt (Germany), 7 September (LaPresse) – Volkswagen, the state of Lower Saxony and the investment group Aurelius Capital have agreed on the key terms for the sale of the Osnabrück plant, which, following the end of car production in 2027, will be gradually converted into a centre of expertise for solutions in the security and defence sectors. Aurelius will become the majority shareholder in the new company, whilst Lower Saxony will hold a stake in the capital. This was announced by Volkswagen, as reported by ZDF. The aim is to secure a long-term industrial future for the site. According to the works council, the agreed solution initially offers prospects for almost 1,400 of the current approximately 1,800 employees, equivalent to around three-quarters of the workforce. Following normal staff turnover and early retirements, the new company is expected to have around 1,200 employees, for whom job security is guaranteed until the end of 2029. Solutions are still being considered for the remainder of the workforce, particularly in the area of technical development. The first major project will be a collaboration with the Israeli defence group Rafael Advanced Defence Systems, best known for the ‘Iron Dome’ missile defence system. The cooperation will focus on the potential production in Osnabrück of air defence systems and components for Germany and Europe, and is expected to pave the way for further partnerships and projects in the sector. Rafael develops and manufactures air defence and missile systems, including the ‘Iron Dome’ and the ‘Iron Beam’ laser system. The group also supplies the Trophy active protection system, which is used on German Leopard tanks. The new company is expected to involve staff in Osnabrück in setting up production and its industrialisation. The conversion marks a turning point for a plant with over 125 years of history in the automotive industry: following the end of production of Porsche models at the end of 2025, only the T-Roc Cabrio is currently produced in Osnabrück. The last unit is expected to roll off the production line in the summer of 2027. However, the sale is not yet finalised. The agreement forms the basis for the next steps, which include defining future responsibilities and the economic and organisational structure, as well as obtaining the necessary approvals from the company’s governing bodies and undergoing checks by the relevant authorities.