Volkswagen CEO Oliver Blume held meetings this week at the company’s plants around the country to present streamlining plans to workers and unions and discuss the cuts needed to overcome the German carmaker’s financial troubles. As passed of these meetings he confirmed for the first time that Volkswagen is in talks to save the factory in Osnabruck by using the plant for military production.
"We are currently examining if and in what way we can participate in a future potential industrial solution for the Osnabruck site," said Olef Lies, minister-president of Lower Saxony, according to the "Wolfsburger Allgemeine."
According to the report, the federal government will also take part in establishing a new partnership that will manufacture Iron Dome parts at the plant, and a memorandum of understanding has already been signed with Rafael to produce parts for Iron Dome and other missile interception systems. "Talks are at an advanced stage," it was reported.
Representatives of the trade unions at the plant have also expressed optimism over the past 24 hours, according to the report, which did not name the Israeli government company and spoke of a "future of continued production" at the plant, which produces convertible models for Volkswagen until the end of 2027 and is expected to close if an agreement is not signed.
The involvement of the state and federal governments is supposed to solve problems for Volkswagen, which is hesitant to define itself as one that enters the arms production business. The Qatari investment fund, which holds 17% of Volkswagen shares, has also expressed opposition to the plan in the past.
Published by Globes, Israel business news - en.globes.co.il - on August 27, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.