VW-Autowerk in Osnabrück wird Rüstungsstandort

Volkswagen's Osnabrück plant to become a defense and security solutions center post-auto production. Volkswagen, Niedersachsen, and investor Aurelius Capital have agreed on key points for a potential sale, according to a statement. Following the end of car production in summer 2027, the site will be gradually transformed into a competence hub for security and defense solutions.

The plan envisages Aurelius as the majority owner, taking over Volkswagen Osnabrück GmbH together with the state. The transaction aims to secure the site's long-term existence. The possible purchase price was not initially disclosed. The current solution offers job security for around 1,400 of the current 1,800 employees, covering about three-quarters of the workforce.

Volkswagen CEO Oliver Blume described it as a "major step to open up an industrial future for the site." "Volkswagen is taking responsibility for Osnabrück," Blume said. Niedersachsen Ministerpräsident Olaf Lies (SPD) emphasized that Germany and Europe must strengthen their capabilities and become more independent in the light of changing security circumstances.

"Niedersachsen wants to contribute to creating added value and secure employment," Lies added, who is also a member of the VW Supervisory Board. The first anchor project is to collaborate with the Israeli defense contractor Rafael, which produces air defense systems, missiles, and electronic warfare facilities. Notably, Rafael is known for manufacturing the "Iron Dome," which protects Israel against rockets, missiles, and drones.

Rafael's head, Joav Tourgeman, stated: "Today, we are building a long-term industrial partnership with our German partners with the goal of fully producing technology in Germany to protect Germany and Europe." No sale has yet taken place, and the cooperation is expected to focus initially on the potential development and production of components for air defense systems.

Rafael has the technological expertise, and the Osnabrück workforce will play a central role in establishing the manufacturing and industrialization processes. Aurelius Capital's Managing Director, Tomer Jacob, quoted in the statement, highlighted Osnabrück's unique assets, such as long-standing experience with demanding products, precise manufacturing processes, high-quality standards, and strong teams, which cannot be replicated.

The investment company, based in Tel Aviv, Israel, is the primary stakeholder. The agreement between the parties does not constitute a completed sale but lays the groundwork for the next steps, including the definition of future responsibilities, economic and organizational structure, and preparations for the possible transition.

The finalization depends on concluding agreements, necessary board decisions, and administrative reviews. Details will be provided as soon as reliable outcomes are available. From Karmann to Volkswagen, the Osnabrück plant started as a traditional bodyshop and contract manufacturer for Karmann, which produced the iconic Karmann Ghia and later specialized in niche models like convertibles and sports coupes.

Renowned worldwide for its Karmann Ghia, the company ceased automobile production in 2009 due to economic difficulties. Volkswagen took over a significant portion of the site, with Christian Wulff, then the Ministerpräsident of Niedersachsen, playing a key role in securing Volkswagen's involvement. However, after years of uncertainty, the automotive industry's decision to phase out production at Osnabrück marks a significant turning point.

The workforce could benefit from the agreement, as it offers job security and ensures the continuation of existing collective bargaining agreements, employment contracts, and union structures. The new competence center aims for a workforce size of around 1,200 positions after further reductions through retirement and phased retirement.

However, the fate of the remaining employees, particularly those in development, remains uncertain, with no solution provided yet. Betriebsratschefin Daniela Cavallo stated that VW must continue to fulfill its responsibility in this regard. IG Metall's Christiane Benner emphasized that VW still owes a duty of care to the broader workforce.

The Osnabrück model could set an example for other Volkswagen plants. While no complete sale has been finalized, the agreement provides a foundation for the future of the site, which could potentially serve as a model for other Volkswagen facilities.