Volkswagen is considering plans to convert one of its German car factories into a production hub for Israel’s missile defence systems, the Financial Times reported on Tuesday.
The carmaker has held talks with Israel's Rafael Advanced Defense Systems about repurposing its Osnabruck plant, shifting from vehicle production to manufacturing components for Israel’s Iron Dome system.
The move underscores growing pressure on Germany’s automotive sector, which is struggling to compete with Chinese electric vehicle makers.
It also carries historical resonance: during the Second World War, Volkswagen halted car production and switched to arms manufacturing for Nazi Germany.
The proposal points to a wider shift, as parts of German industry move closer to defence production with support from Berlin.