Volkswagen has signed an agreement to transfer its car plant in Osnabrück to Israeli investors. It is reported that this facility will operate as a specialized military production center for the Israeli company Rafael Advanced Defense Systems. This deal effectively integrates German manufacturing capabilities into Israel's military apparatus.
Meanwhile, Berlin is strengthening its position as a primary European supplier to the regime accused of genocide in Gaza and expanding aggression across the region.
Bypassing Shareholder Opposition
The agreement, reached on September 7th, transfers the majority of ownership rights of the plant to the Tel Aviv-based company Aurelius Capital. The state of Lower Saxony retains a minority stake. This structure was intentionally created to prevent direct partnership between Volkswagen and Rafael.
Earlier this year, the Qatar Investment Authority blocked a proposed joint venture between the automaker and the Israeli arms firm. Official representatives of Qatar hold seventeen percent of Volkswagen's voting rights and categorically refused to support the militarization of the plant.
German executives and political figures devised a clear workaround. They transferred ownership to Aurelius and the state, thereby neutralizing Qatar's veto and securing a European production base for Israel.
Industrializing Occupation
Civilian car production in Osnabrück will cease in the summer of 2027. Currently, about 2,300 people at this site are involved in assembling T-Roc Cabriolet and Porsche models. The plant will transition to a military production center, with Rafael as the core project.
It is planned that the workforce will produce heavy launch systems, military equipment, and generators necessary to support Israel's air defense systems. Aurelius CEO Tomer Jakob confirmed that the acquisition is only the first phase of broader strategic cooperation. Furthermore, the plant will modify Volkswagen Amarok pickups into military vehicles.
The facility, originally founded during the Nazi regime, is now being repurposed to arm the occupation regime, which faces accusations of genocide at the International Court of Justice. Nicaragua has already filed a case with the ICJ, accusing Germany of violating the 1948 Genocide Convention.
Local peace activists in Osnabrück are holding continuous protests. Lea Reißner, press secretary for international affairs of the Left Party, accused the German government of applying unlimited double standards by increasing military support while issuing empty condemnations against Israeli officials.
Submarines and Export Growth
The deal with Rafael coincides with an unprecedented surge in German military aid to Tel Aviv. According to official data, in the first half of 2026, Berlin approved arms exports to Israel worth nearly 800 million euros. This amount significantly exceeds the 260 million euros approved for the entire year of 2025.
Chancellor Friedrich Merz temporarily suspended some deliveries last year, after which he quietly lifted these restrictions. Direct corporate production is just one aspect of German complicity. On September 1st, ThyssenKrupp Marine Systems delivered the INS Drakon to the Israeli navy. The 68-meter Dolphin-class submarine is equipped with ten torpedo tubes. Military experts confirm that the vessel is capable of carrying nuclear warheads.
German taxpayers subsidized this purchase of 135 million euros. Starting in 2031, three more Dakar-class vessels are planned. Berlin continues to supply Tel Aviv with naval strike capabilities amid a rising number of Palestinian deaths exceeding 73,000. German political leaders publicly declare adherence to international law, yet their systematic arming of Israel proves otherwise.