Volkswagen CEO Oliver Blume announced the conversion of a German car plant into a defense production facility.
Volkswagen CEO Oliver Blume confirmed that the company has reached a preliminary agreement to sell its Osnabrück car plant to the State of Lower Saxony and Aurelius Capital. The investment firm, headquartered in Tel Aviv, will be the majority owner and plans to work with Rafael Advanced Defense Systems to manufacture systems and components for air defense systems across Germany and Europe. Vehicle production at the site is scheduled to end in the summer of 2027. The conversion aims to preserve nearly 1,400 of the 1,800 jobs at the factory. This move comes as Germany increases its defense budget by one-third next year to €109.7 billion. The deal is subject to regulatory approval and a final agreement on the new organizational structure. Volkswagen stated that the cooperation is intended to pave the way for future partnerships and projects.
Sources
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Volkswagen strikes deal with Israel investment firm to turn car plant into defense facility
CNN
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Rafael, Aurelius to build Iron Dome components at former Volkswagen plant in Germany's Lower Saxony
The Jerusalem Post