Germany’s troubled industrial base is increasingly pivoting toward defense production
German auto giant Volkswagen could repurpose one of its struggling plants to produce components for an Israeli arms company, the Financial Times reported on Wednesday.
Volkswagen’s factory in Osnabruck, Lower Saxony is expected to halt vehicle production later this year as part of a sweeping cost-cutting and restructuring plan adopted in 2024. The FT reports that the company is now in talks with Israel’s Rafael Advanced Defense Systems about converting the site to manufacture elements of the Iron Dome air defense system.
Sources cited by the newspaper said that, if approved, the shift toward producing heavy trucks, missile launchers, and power generators – but not interceptor missiles – could take 12 to 18 months. The initiative reportedly has backing from the German government.
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