- Volkswagen has reached a tentative deal to sell their Osnabrück plant.
- It currently builds the T-Roc Cabriolet, but production ends next summer.
- Plant will be taken over and repurposed to make air defense systems.
Volkswagen is embarking on a major restructuring that will see the company shed tens of thousands of jobs and axe 50% of their lineup. Four plants are also on the chopping block, while a fifth one is scheduled to be sold.
According to Volkswagen, they’ve reached an agreement on the possible sale of their Osnabrück facility, which makes the T-Roc Cabriolet. It employed around 2,300 people as recently as April 2024.
More: VW T-Roc Cabriolet Won’t Survive For A Second Generation
The deal was reached earlier today between the automaker, Aurelius Capital, and the State of Lower Saxony. Under the terms of the agreement, Aurelius Capital will become the majority owner of the plant, although the local government will also have a stake.
Once Volkswagen wraps up production in the summer of 2027, the plan is to redevelop the facility for military purposes. This will be done in coordination with Rafael Advanced Defense Systems and the plant is slated to manufacture equipment and “components for air defense systems for Germany and Europe.”
The deal is subject to final agreements, necessary approvals, and regulatory reviews. This could be an issue as Aurelius Capital and Rafael Advanced Defense Systems are both Israeli companies. The latter is perhaps most famous for the Iron Dome family of missile defense systems, which have made over 10,000 interceptions over the years.
Earlier this summer, there were reports that the Qatar Investment Authority was opposing the plan due to this connection. However, they appear to have backed down and this could result in over 1,200 jobs being saved.
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.”
Aurelius Managing Director Tomer Jacob added, “Osnabrück brings with it something that cannot be built from scratch: many years of experience with demanding products, precise manufacturing processes and high quality, well-coordinated teams, and a strong tradition.” He went on to call the agreement an “important step” to creating a “viable, long-term” future on the site.
