Crisis-wracked German auto giant Volkswagen said Monday that one of its plants would be sold off and converted to make defence equipment after car production ends there.
It is part of a sweeping overhaul at Europe's top carmaker, which is already pushing through the biggest job-cutting drive in global auto industry history as it battles Chinese competition, US tariffs and patchy electric car sales.
The announcement is also the latest tie-up between Germany's ailing auto industry and the defence sector, which is booming as countries build up their militaries to face an increasingly dangerous world.
VW's Osnabrueck plant, in northwest Germany, is to be sold to Tel Aviv-based investors Aurelius Capital and the German state of Lower Saxony, a major VW shareholder, with an initial air defence project planned for the Israeli firm Rafael Advanced Defence Systems.
They did not disclose the sale price.
