Volkswagen’s origins trace back to 1930s National Socialist Germany, where the brand was created as part of a state-backed effort to produce an affordable ‘people’s car’ (Volkswagen literally means ‘people’s car’ in German).

In 1933, Adolf Hitler announced his vision for a cheap, reliable car that ordinary German workers could afford.

The German Labour Front (Deutsche Arbeitsfront), A National Socialist organization, was tasked with creating the company that would build this car.

FAST FORWARD TO 2026

RIGHT: New VW Symbol

German auto giant Volkswagen has agreed on plans to sell one of its factories and convert the site into a military production hub in partnership with Israeli arms manufacturer Rafael Advanced Defense Systems, which is set to become its first major industrial partner.

Volkswagen announced on Monday that it had reached an agreement with the state of Lower Saxony and the Israeli investment company Aurelius Capital on key terms for the sale of its Osnabrück plant.

Under the plan, Aurelius would become the majority owner, while Lower Saxony would also take a stake in the facility.

Israeli Arms Manufacture

The factory would then be gradually transformed from car manufacturing into what Volkswagen described as a ’competence center for security and defense solutions.’ 

Its first anchor project would involve cooperation with Rafael on the manufacture of air-defense systems and components for Germany and other European customers.

Rafael is the Israeli state-owned defense company behind the Iron Dome missile defense system.

Israel’s Military Vehicles

The Osnabrück factory is expected to manufacture equipment including military vehicles, launchers and generators used by the system.

The Osnabrück site has a history of military production dating back to the Christian Reich.

The factory originally belonged to coachbuilder Karmann, which produced aircraft components for the German war effort.

Volkswagen took over the company’s Osnabrück operations following Karmann’s insolvency in 2009 and decided in 2024 to end vehicle production by the summer of 2027.

1,200 Wage Slaves

The new arrangement is expected to provide employment to more than 1,200 workers. Volkswagen Group CEO Oliver Blume said the agreement would open up a new industrial future for the site.

Other European carmakers, including Mercedes-Benz, have also been looking increasingly toward the defense sector.

The conversion comes amid a broader military buildup across the EU that Moscow sees as preparation for a direct conflict with Russia. Let readers know what you think

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