Volkswagen is holding talks with Israel's Rafael Advanced Defense Systems to produce Iron Dome air defense components at its Osnabrück plant, the Financial Times reports. The facility, employing 2,300 workers, faces closure after T-Roc Cabrio production ends in mid-2027.
Volkswagen's Osnabrück plant currently produces the T-Roc Cabrio until mid-2027, putting 2,300 jobs at risk. The Financial Times reported on March 24 that the company is negotiating with Rafael Advanced Defense Systems to repurpose the site for Iron Dome components, citing insiders familiar with the matter. These would include special trucks for rocket transport, launchers, and generators—not missiles themselves. The switch requires low investments and could be completed in 12 to 18 months, but needs employee approval. “The goal is to save them all, perhaps even grow,” the FT quoted an insider. Rafael seeks better access to the European market, where countries are boosting air defenses amid Russia's invasion of Ukraine. Germany is a preferred location due to its strong Ukraine support and requests from senior officials to utilize idle capacity. The German government backs the plan. A VW spokesperson said the company is exploring viable options for Osnabrück post-2027 but referred to prior statements excluding weapons production by Volkswagen AG. Recently, VW confirmed considering military vehicles there; Rheinmetall declined a takeover.
