Volkswagen is reportedly in discussions with Israeli defense contractor Rafael Advanced Defense Systems about potential production at its Osnabrück plant, according to media reports. The German automaker has ruled out weapons production at the facility but has declined to confirm or deny talks about "military-adjacent" production with the maker of Israel's Iron Dome missile defense system.
Volkswagen told Euronews Business it is "in dialogue with various market players" as part of an "open review process" for the site once car manufacturing concludes at the beleaguered plant in 2027. The company stressed there are "currently no concrete decisions or conclusions regarding the future direction of the site."
in dialogue with various market players as part of an open review process for the site once car manufacturing concludes at the beleaguered plant in 2027
Media reports, initially published in the Financial Times, suggest the conversations may include Rafael, potentially allowing the plant to pivot from car production to components for air defense systems. The Osnabrück facility, described as a "project- and order-oriented facility for small-series and special projects," faces the potential loss of approximately 2,300 jobs if it fully shuts down.
Volkswagen reiterated that "the production of weapons by Volkswagen AG remains ruled out" and stated the company does not "engage in speculation regarding further plans for the Osnabrück site." According to reports, the plant could manufacture various components for the Iron Dome Defense System, including heavy-duty trucks for transporting missiles, launchers, and power generators, but would not produce interceptor missiles themselves.
currently no concrete decisions or conclusions regarding the future direction of the site
the production of weapons by Volkswagen AG remains ruled out
does not engage in speculation regarding further plans for the Osnabrück site