Volkswagen will switch its German plant to producing air defence systems for Israel

Dmitro Shevchuk
Dmitro Shevchuk Executive Editor
Volkswagen will switch its German plant to producing air defence systems for Israel
The Iron Dome
The German automotive giant is in talks with the Israeli defence firm Rafael Advanced Defence Systems regarding the conversion of one of its plants to manufacture components for the Iron Dome air defence system.

This is according to the Financial Times.

The plant in question is Volkswagen’s facility in Osnabrück (Germany), where cars are currently manufactured. Once production of the T-Roc Cabriolet model ends in 2027, the plant could be converted to produce defence equipment.

The plan involves the production of components for the Iron Dome air defence system and the potential sale of air defence systems to European countries.

Around 2,300 jobs will be preserved at the plant.

Production is expected to begin 12–18 months after the decision is made.

However, Volkswagen has stated that it does not plan to manufacture the missiles or weapons themselves, but may produce components for air defence systems.

This case reflects a trend: the European automotive industry is gradually shifting towards military production.

The reasons for this include falling profits for car manufacturers, competition from Chinese producers, and a sharp rise in defence spending across Europe.

And the need for air defence systems plays a key role against the backdrop of Russia’s war against Ukraine and conflicts in the Middle East.

Analysts say that many German factories could be converted for military production, and Volkswagen is just one of the first examples.

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