About 1,400 of the 1,800 positions at Volkswagen’s Osnabrück plant will be retained, the company said on 7 September 2026, as part of an agreement in principle to sell the site to Aurelius Capital and the state of Niedersachsen.
Deal structure and timeline
The Heise report confirms that Volkswagen, the state of Niedersachsen and Aurelius Capital have agreed on the Eckpunkte for a sale. Aurelius will become the majority owner of a newly formed Volkswagen Osnabrück GmbH, with the state retaining a co‑ownership stake. The transaction is intended to preserve the site long‑term and will be finalised after the end of car production, scheduled for 2027.
Following the cessation of automotive output, the plant will be repurposed step‑by‑step into a "competence centre for security and defence solutions". The Heise article states the conversion plan is designed to give the location a sustainable future beyond the automotive era.
Job security for the workforce
According to the works council, the conversion plan offers a future for "knapp 1 400" of the current 1 800 employees – roughly three‑quarters of the workforce. The retained jobs will be tied to the new defence‑oriented activities that the centre will host.
While the agreement secures those positions, the remaining 400 roles are expected to be phased out as the plant transitions away from car manufacturing. The exact timing of those reductions has not been disclosed.
First anchor project: partnership with Rafael
The Heise source identifies Israel’s defence contractor Rafael as the first anchor project for the competence centre. Rafael’s CEO Joav Tourgeman is quoted saying, "Heute bauen wir eine langfristige industrielle Partnerschaft mit unseren deutschen Partnern auf …" ("Today we are building a long‑term industrial partnership with our German partners …"). The collaboration will initially focus on the development and possible production of components for air‑defence systems, leveraging Rafael’s expertise in systems such as the Iron Dome.
This partnership gives the Osnabrück site an immediate commercial pipeline and signals a broader strategic shift for Volkswagen’s German assets toward the defence sector.
Financial backdrop of the new partner
Rafael Holdings, Inc. (NYSE:RFL) reported the following figures for the fiscal year ending 30 April 2026, filed in a Form 10‑Q on 11 June 2026:
| Metric | Value | Period |
|---|---|---|
| Revenue | 630,000 | FY 2026 |
| Net income | -20,459,000 | FY 2026 |
| Total assets | 91,990,000 | FY 2026 |
| Shareholders' equity | 75,386,000 | FY 2026 |
| Source: SEC filings (Form 10‑Q, 11 June 2026) | ||
Rafael’s negative net income for the period underscores the capital‑intensive nature of defence R&D, but its asset base and equity remain robust, providing a solid foundation for the planned collaboration.
Company background
- Volkswagen AG – chief executive Thomas Schäfer, headquartered in Wolfsburg, Germany; core business: automotive manufacturing.
- Aurelius Capital Management – New York‑based investment firm; role: prospective majority owner of the Osnabrück site.
- Rafael Holdings, Inc. – listed on the NYSE (RFL), specialised in defence systems; CEO Joav Tourgeman.
What remains uncertain
The agreement is still subject to regulatory clearance and final contract negotiation. Details such as the purchase price, the exact share split between Aurelius and the state of Niedersachsen, and the timeline for the first defence contracts have not been disclosed. Moreover, the transition of the remaining 400 workers will depend on the pace of the plant’s conversion and the uptake of defence orders.
Analysts will watch how quickly the competence centre can attract additional partners beyond Rafael, and whether the model could be replicated at other VW sites slated for restructuring under the broader 2026‑2031 transformation plan.
For now, the announced deal adds a new dimension to Volkswagen’s restructuring narrative, shifting at least one German plant from automotive output to a defence‑industry hub while preserving the majority of its jobs.