Volkswagen in talks to transform car factory into missile parts production base for Israel's Iron Dome

Volkswagen is reportedly in talks with an Israeli company to transform one of its car-making plants in Germany into a production base for missile defences. The Financial Times has reported that Volkswagen is speaking with Israel's Rafael Advanced Defence Systems about its Osnabrück facility in north-west Germany. Any potential deal could see the Osnabrück plant shift from making cars to missile defence systems, according to sources familiar with the plan. The report stated that the German factory would be transformed to make components for the Israeli Iron Dome air defence system. TRENDING Stories Videos Your Say Responding to the claims, Volkswagen said it continued to "explore options" for the factory. It added that although it was in discussions with market participants, it would not allow the production of weapons. Volkswagen has confirmed plans to sell or transform the site in the coming years following tense discussions with unions. The Osnabrück site employs around 2,300 people and will see major changes once production of the T-Roc Cabriolet ends next year. The iconic German company had been in talks with arms manufacturer Rheinmetall last year, though experts suggested the talks had stalled recently. Volkswagen said it aimed to cut 35,000 jobs across its German sites by 2030 following intense talks between the manufacturer, the IG Metall union and the Works Council. In addition to changes to the Osnabrück plant, VW proposed new measures for sites in Wolfsburg, Emden, and Zwickau. In late 2024, it also noted that it would review factory costs at sites in Kassel, Braunschweig, Salzgitter, Hannover, Wolfsburg and Chemnitz. LATEST DEVELOPMENTS Labour announces new £1billion fund for electric vehicles including massive £81,000 discount Petrol and diesel car owners paying £1,500 more to fill up than EV drivers spend charging Electric vehicle milestone reached as new tests show 'fastest charging we've seen in the UK' Commenting on the plans at the time, Daniela Cavallo, Chairwoman of the General and Group Works Council of Volkswagen AG, criticised the objectives of the cost-cutting measures. She said: "Management is absolutely serious about all this. This is not sabre-rattling in the collective bargaining round. "This is the plan of Germany's largest industrial group to start the sell-off in its home country of Germany." Volkswagen has struggled to adapt to the switch to electric vehicles in recent years, prompting the decision to shut facilities in Germany and shift production abroad. Experts have noted how VW has fallen behind Chinese brands in terms of production of popular electric vehicles, especially in Europe. While it has a distinct range of electric vehicles on the market, uptake has been slower than that of other established European manufacturers. Oliver Blume, CEO of Volkswagen Group, has continually called for electric vehicle mandates to be relaxed to allow for petrol, diesel and hybrid cars to be on the market for a longer period of time. Our Standards: The GB News Editorial Charter

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