Launchers instead of Passat. Volkswagen enters the arms industry

2026-03-26 06:00
publication
2026-03-26 06:00
From cars to air defense systems – this would be just a stunt in the automotive industry. And it's close to that. Volkswagen is in talks with the Israeli company Rafael Advanced Defense Systems regarding a contract that would change the production profile in one of the German concern's factories, reports the Financial Times.

The Volkswagen plant in Osnabrück – like the entire German automotive industry – has been struggling to stay afloat for a long time due to competition from China. According to the restructuring carried out by the company, it is to end production next year. Factory conversion to manufacturing parts for the Iron Dome defense systemowned by a state-owned company from Israel, would be a spectacular turnaround for both industries.
Production for Israel could start within a year. According to a Financial Times source, the concept would require minimum new investments: “It takes some money to switch over, but it's relatively easy.” The idea is to combine “proven defense technology with German production precision“It would also save all 2,300 jobs at the plant in Lower Saxony, which was at risk of closure. For now, unofficially, the German government actively supports this proposal.
The goal is to save everyone and maybe even develop it, said one person familiar with the plans. The potential is huge, but it is also an individual decision of employees whether they want to be part of this idea – he adds.
What will be produced in Osnabrück?
Ultimately, thanks to this cooperation, the company could meet the demand for Iron Dome elements in Europe, which would include:
- heavy-duty trucks transporting missiles,
- launchers,
- power generators.
The plant would not produce just missiles.
This wouldn't be Volkswagen's first affair with the arms industry. The company already produces military trucks as part of a joint venture belonging to a subsidiary of MAN and the German arms group Rheinmetall. However, the partnership with Rafael would mark a major return to weapons production for Volkswagen, which produced military vehicles and V1 flying bombs for the Wehrmacht during World War II.
Iron Dome not for Europe?
Some experts question the usefulness of Iron Dome, which has a range of about 70 km, in Europe, arguing that the system is mainly used to deter short-range missiles (like those from Gaza) rather than protect against long-range threats.
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