Volkswagen is advancing plans to sell its Osnabrück factory to Aurelius Capital and Lower Saxony for defense production after vehicle assembly ends in 2027. Aurelius would hold the majority stake, while Rafael Advanced Defense Systems would be the initial industrial partner and make components for European air-defense systems. Rafael chief executive Yoav Tourgeman said the effort is intended to protect Germany and Europe. Reported plans include missile transporters, launchers and power generators, but exclude Tamir interceptor missiles used in Israel's Iron Dome. The project comes as Volkswagen cuts capacity amid weak demand, high costs and Chinese competition, with its restructuring targeting 100,000 job reductions by 2030. Germany has also expanded its Israeli missile-defense procurement, signing a $3.5 billion Arrow 3 contract in 2023 and a $3.1 billion follow-up purchase.