Volkswagen | Armaments instead of convertibles at VW in Osnabrück

Lower Saxony's Prime Minister Olaf Lies (SPD) announced the signing of a declaration of intent. Photo: dpa/David Ebener Osnabrück. The VW Osnabrück plant is to have a future with arms contracts. Volkswagen, the state of Lower Saxony and the German investment firm Aurelius Capital have agreed on key points for a sale, according to a statement. After car production ends in 2027, the site will gradually be developed into a “competence center for security and defense solutions”. “This partnership creates realistic opportunities for long-term, high-quality employment at a location that has stood for industrial excellence for 125 years,” said Olaf Lies (SPD), Prime Minister of Lower Saxony.

The plan calls for Aurelius to take over Volkswagen Osnabrück GmbH as the majority owner together with the state. The aim of the transaction is to preserve the location in the long term. According to the works council, the solution now being implemented offers a future for almost 1,400 of the current 1,800 employees.

The first anchor project planned is a collaboration with the Israeli arms company Rafael. The company produces air defense systems and guided missiles and electronic warfare systems. It is known as the manufacturer of the “Iron Dome,” which Israel uses to combat rockets, cruise missiles and drones. 

The cooperation is intended to pave the way for further projects under the umbrella of the new company. Rafael boss Joav Tourgeman said: "Today we are building a long-term industrial partnership with our German partners with the aim of ensuring that the technology is produced entirely in Germany in order to protect Germany and Europe." Initially, the collaboration will focus on the possible development and production of components for air defense systems. According to VW, the workforce in Osnabrück will play a central role in establishing production and industrialization. 

VW Group Works Council Chairwoman Daniela Cavallo spoke of an “important milestone for our colleagues in Osnabrück”. Christiane Benner, chairwoman of the IG Metall union, emphasized that the industrial prospects for Osnabrück and the region mean “above all, security for the employees and their families.” However, it does not release Volkswagen from the task of creating reliable future prospects for the remaining employees.

Criticism, however, came from the Zukunftswerk Osnabrück, an association of initiatives critical of the military: There had been "proposals for democratizing production and switching to minibuses for local public transport," said Annika Fuchs from the environmental association Robin Wood. "However, VW has not seriously explored such civilian alternatives." Andreas Buderus from the "Say No!" campaign added: "It is particularly bitter that the local IG Metall and the works council also see the only way to 'secure jobs' in an arms conversion. It is clear that the work also becomes dependent on the fact that wars are being waged around the world.

The agreement is not yet a completed sale - but should form the basis for the next steps. Implementation is subject to final agreements, necessary committee resolutions and official review. Details will be provided as soon as reliable results are available. 

The Volkswagen plant in Osnabrück emerged from the traditional body and contract manufacturer Karmann. The company had been building the Beetle convertible since 1949 and later manufactured niche models, especially convertibles and sports coupes, on behalf of various manufacturers. In addition to Volkswagen, customers included BMW, Renault, Jaguar, Kia and Mercedes-Benz. Karmann became known worldwide with the Karmann Ghia, which was built from 1955 to 1974.

In the crisis year of 2009, the company went bankrupt. Volkswagen then took over large parts of the plant. Christian Wulff, who sat on the VW supervisory board as Prime Minister of Lower Saxony, played an important role. In this role, the CDU politician, whose constituency was in Osnabrück, campaigned for VW to become involved in the city and take over large parts of the site. The car manufacturer continued to operate the site as a small multi-brand factory - specializing in small and very small series as well as overflow production from other group factories. 

But recently, the employees there have been looking into an uncertain future: production of the Porsche models manufactured in Osnabrück has already ended at the end of 2025. The Stuttgart-based company also canceled a hoped-for follow-up order for an electric sports car. Currently only the T-Roc convertible from VW is being built in Osnabrück. dpa/nd

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