Volkswagen Could Switch Plant From Building Cars To Military Systems For Israel’s Iron Dome Maker

German carmaker Volkswagen is reportedly considering a deal to switch production at a troubled car plant in Germany from cars to defense equipment in a deal with Rafael, the firm that produces Israel’s Iron Dome air defense system.A deal could save all 2,300 jobs at Osnabrück plant in Lower Saxony, the Financial Times reports.The chief executive officer of the Volkswagen Group, Oliver Blume, indicated last year that the car giant would “consider” building military equipment as Germany’s auto industry struggles under falling exports.The deal, which would need to be approved by workers, would allow VW to make components for the Iron Dome air defense system to be sold to European countries. The equipment would include the trucks used to carry the systems and launchers but not the actual missiles.The report claims the German government supports the plan, according to an unnamed source. In some ways, the potential deal would be a return to the company’s roots. VW was established in 1932 by the German Labour Front. In 1934, Adolf Hitler became involved, ordering the production of a basic vehicle. By 1939, World War II forced the company to change its production to military vehicles, including a “bucket car” utility vehicle, along with an amphibious truck. As with much of the wartime production in Nazi Germany, slave labor was used at some Volkswagen plants, drawing from the Arbeitsdorf concentration camp.Europe is in the midst of a historic rearmament in response to Russia’s invasion of Ukraine and President Trump’s demand that European members of NATO contribute more to their own defense.Production could be up-and-running within a year, according to the report.The Osnabrück plant was set to end production next year as part of a cost-cutting plan and VW was seeking to sell the plant. A deal to purchase the plant by German defense giant Rheinmetall fell through.The new deal could save all of the jobs and even increase the number of workers at the facility.Volkswagen says it continues to explore “viable options” for the Osnabrück site following the phase-out of current production in 2027.A spokesman tells the Sun that the Osnabrück plant has developed various vehicle concepts in recent months but there are no concrete projects in the pipeline.“The production of weapons by Volkswagen AG remains ruled out for the future, and we do not engage in speculation regarding further plans for the Osnabrück site,” the spokesman says.

Volkswagen Could Switch Plant From Building Cars To Military Systems For Israel’s Iron Dome Maker

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