Volkswagen partners with Israeli investment firm to convert automotive factory into defense site.

Volkswagen is transitioning its Osnabrück car plant in Germany to focus on defense production in collaboration with Israel’s Aurelius Capital, as Europe increases military spending. This shift aims to manufacture components for air defense systems, supporting job retention at the plant which is set to end vehicle production by 2027. The deal, part of a broader restructuring of Volkswagen amid declining vehicle demand, stands to save most of the current workforce. The move aligns with Germany’s defense budget increase and reflects a need for enhanced security capabilities in Europe. The agreement is pending regulatory approval.