Volkswagen is in talks with arms company Rafael Advanced Defence Systems to build the Iron Dome air defence system for Israel. According to a Financial Times report, VW's Osnabrück plant will be converted from car production to produce the system that can repel Iranian missiles that have been seen on social media.
The Osnabrück plant has 2,300 employees and all of them will be retained under the deal. The German government is believed to be backing the proposal, with weapons production set to begin within 12–18 months. In addition to being used by Israel, VW and Rafael also want to market the Iron Dome to customers in Europe.
This is not the first time Volkswagen has converted a car factory into a weapons factory. During World War II, Volkswagen produced the Kubelwagen 4×4 for Nazi soldiers. The Wolfsburg plant also repaired Junkers Ju88 bombers, BMW aircraft engines and V-1 rocket components.
Last year, Volkswagen closed its car manufacturing plant in Dresden, Germany, which will be transformed into a hub for artificial intelligence (AI), robotics and chip design research. The plant, which opened in 2001, is the first local plant to be closed by VW in 88 years.
The move is not surprising as Western automakers are struggling to compete with electric vehicles (EVs) imported from China. Among the issues VW faces are sluggish vehicle software, a lack of innovative features and the much higher prices of Chinese EVs.
