Volkswagen Plant Once Linked to Hitler to Produce Iron Dome Components

Volkswagen has approved Israeli defense firm Rafael's plan to begin producing components for the Iron Dome missile defense system at a German plant as early as next year, according to German media reports. This development comes amid reports of Volkswagen's broader restructuring, which includes approximately 50,000 layoffs and the closure of four factories.

Previously, a deal faced opposition from Qatar's sovereign wealth fund, a major shareholder. To circumvent this, a new plan involves the German state of Lower Saxony potentially taking partial control of the Osnabrück plant to form a joint venture with Rafael, thus avoiding direct ties between Volkswagen and the Israeli company. This arrangement aims to preserve jobs for the plant's roughly 2,300 workers, which is currently at risk of closure.

The Osnabrück facility is slated to cease production of the T-Roc Cabriolet model in 2027. The plan is to manufacture support equipment for the Iron Dome, such as heavy transport vehicles, launchers, and generators, but not the Tamir interceptor missiles themselves. This move is seen as a way to utilize the plant's capacity after the discontinuation of its current automotive model.

Initial reports in March indicated that Volkswagen intended to use the Osnabrück plant for producing the trucks that carry air defense systems, along with launchers and other electrical components. Volkswagen has faced declining revenues due to competition from Chinese automakers. The company hopes this venture will bolster European air defense capabilities amid rising tensions with Russia and potentially lead to sales to European nations.

Volkswagen's origins trace back to Nazi Germany in the 1930s when Adolf Hitler commissioned affordable cars for workers, leading to the company's name, meaning "people's car." This new venture could be seen as a return to producing military-related equipment, 81 years after its founding.