The Volkswagen Osnabrueck plant in Germany in 2024. The company is reportedly in talks with Israel’s Rafael Advanced Defence Systems to convert the plant to make parts for the Iron Dome air defence system.Teresa. Kroeger/Reuters
Volkswagen VWAGY is in talks with Israel’s Rafael Advanced Defence Systems over a deal that would shift production at the car maker’s Osnabrueck plant from cars to missile defence, the Financial Times reported, citing people familiar with the plan.
The companies aim to convert the German factory to make components for the Israeli state-owned group’s Iron Dome air defence system, the report said.
Volkswagen said it continued to explore solutions for the factory, adding that while it was in discussions with market participants it ruled out the productions of weapons.
Germany’s Defence Ministry declined to comment.
Volkswagen wants to sell or reconfigure the site, which employs around 2,300 people, after the end of T-Roc Cabriolet production in 2027 as part of a wider revamp.
Talks with Rheinmetall about a sale stalled late last year, but Volkswagen CEO Oliver Blume said earlier this month that the company remained in talks with defence companies over a solution for Osnabrueck.