FRANKFURT, Sept 7 — German auto giant Volkswagen said Monday that one of its plants would be converted to make defence equipment for the Israeli group Rafael after car production ends there next year.
The struggling carmaker said it would sell the Osnabrueck plant to Tel Aviv-based Aurelius Capital as well as the German state of Lower Saxony, a major VW shareholder, with an initial air defence project planned for Rafael Advanced Defence Systems.
“With today’s agreement, we are taking an important step towards opening up a new industrial future for the site,” Volkswagen CEO Oliver Blume said. “Volkswagen stands by its responsibility for Osnabrueck.”
The company, which is struggling with weak demand, had already decided in 2024 to end vehicle production at the site in northwest Germany by 2027.
The deal will guarantee at least 1,200 jobs are preserved at the factory, VW’s works council said.
The long-term future of four other German factories is also uncertain.
The 10-brand auto giant, whose brands range from Audi to Porsche and Seat, is battling fierce Chinese competition amid a troubled shift to electric vehicles.
Management and unions last week struck a deal to shed 50,000 more jobs across the group, taking the total number of positions set to be lost in coming years to 100,000. — AFP
Malay Mail – Money
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