Volkswagen and Rafael Advanced Defence Systems discuss the relocation of missile defense production to Germany

Volkswagen is in discussions with the Israeli company Rafael Advanced Defence Systems to move the production of components for the Iron Dome air defense system to the factory in Osnabrück, which is facing financial difficulties.

This partnership could save the 2,300 jobs threatened with closure, in the context of the German automotive industry facing a decline in profits due to Chinese competition and the transition to electric vehicles.

Production could start in 12-18 months, with workers agreeing to switch to arms production.

Rafael intends to sell the Iron Dome system to European governments, including Germany, amid a general rearmament in response to Russia's invasion of Ukraine. This move comes as Germany plans to invest over 500 billion euros in defense by the end of the decade.