A new agreement between Volkswagen, the State of Lower Saxony, and Aurelius Capital could see the Volkswagen Osnabrück car factory transition into a production hub for security and defence solutions.
Under the proposed deal, announced on 7 September 2026, Aurelius will take a majority stake to acquire Volkswagen Osnabrück in partnership with the State of Lower Saxony.
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Their goal is to redevelop the site over the coming years, shifting its focus from small-series and special vehicle production to the manufacturing of systems and components for air defence in Germany and Europe.
The initial anchor project would centre on cooperation with Israeli defence company Rafael Advanced Defence Systems, which would contribute its technical expertise in modern air defence systems.
Volkswagen stated that the Osnabrück workforce is expected to be central in establishing and industrialising new manufacturing operations.
In addition, the company will support the transition, offering its industrial experience, development knowledge, and existing infrastructure during the restructuring phase.
Volkswagen Group CEO Oliver Blume said: “Volkswagen stands by its responsibility for Osnabrück. With today’s agreement, we are taking an important step towards opening up a new industrial future for the site.
“Time and again, the employees in Osnabrück have demonstrated just how much expertise, flexibility and commitment this plant has to offer. The site can build on these strengths in the future as well.”
The agreement establishes a basis for subsequent planning, such as clarifying future responsibilities, outlining the economic and organisational framework, and preparing for a possible transition at Volkswagen Osnabrück.
It follows Volkswagen’s 2024 decision to phase out vehicle production at the site by the summer of 2027.
Completion of the transaction is subject to final agreements, necessary corporate approvals, and regulatory review.
Information regarding project activities and future employment prospects will be provided as plans become more concrete, Volkswagen stated.
Lower Saxony Minister-President Olaf Lies said: “With this agreement, we are unlocking a genuine industrial opportunity for Osnabrück. The site boasts a highly-skilled workforce, well-established structures, and extensive experience in handling demanding tasks.”
