Volkswagen Inks Deal With Israeli Firm to Turn Factory Into Defense Hub
The deal could preserve about 1,400 of 1,800 jobs as Volkswagen seeks new uses for plants hit by weak demand and Chinese competition.
- On Monday, the German state of Lower Saxony, Rafael Advanced Defense Systems, and Aurelius Capital signed a letter of intent to purchase Volkswagen's Osnabrück plant, establishing a center for producing Iron Dome support systems and military equipment.
- Qatar, Volkswagen's largest foreign shareholder, blocked the original cooperation proposal, prompting the shift to a full purchase of the site by the new partners.
- The Osnabrück plant currently employs 2,300 people producing Porsche and Volkswagen models; while the Iron Dome's Tamir interceptor will not be manufactured there, Rafael will produce military vehicles, launchers, and generators.
- Minister-President of Lower Saxony Olaf Lies stated the partnership creates "realistic opportunities for long-term, highly skilled employment" at the facility, noting that Germany's security environment has changed fundamentally.
- Rafael President Yoav Tourgeman noted the partnership aims to "protect Germany and Europe," adding that the technology is designed for defense of "today, tomorrow, and well beyond" to ensure reliable security.
252 Articles
252 Articles
Volkswagen to Produce Israeli Ballistic Defense Systems at German Plant
Volkswagen will convert part of its Lower Saxony plant in Germany to produce Israeli-designed defense equipment in partnership with Plasan, a specialist in ballistic protection systems. The move reflects rising European defense demand after Russia’s 2022 invasion of Ukraine and allows the automaker to repurpose existing automotive infrastructure without major new investment.
The pressured German car giant Volkswagen is selling its 125-year-old factory in Osnabrück so that sought-after defense equipment can be produced instead, and most jobs can be preserved.
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Volkswagen finds defence future for German plant
Volkswagen has struck a preliminary deal that will see one of its German sites switch to defence production under new ownership, a first in the automaker's efforts to restructure plants struggling to compete with lower-cost Chinese rivals.
Volkswagen reported the sale of one of its plants in Germany, where workers will manufacture weapons.
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