Volkswagen to convert German factory to make Iron Dome missiles for Israel

2026-03-25 - 03:40

By Semih Bozkus German automaker Volkswagen is planning to convert one of its domestic factories from automobile production to manufacturing missiles for Israel's Iron Dome air defense system, according to a report by the Financial Times. The move would repurpose the company's Osnabrück plant amid broader regional conflict. From cars to defense systems Under the proposed agreement with Israel's Rafael Advanced Defence Systems, Volkswagen would transform its Osnabrück facility—currently facing closure risk—into a missile production site. The plan aims to retain all 2,300 workers at the plant while positioning the partners to market the defense systems to European governments. Production could begin within 12 to 18 months if the deal moves forward. German government backing The German government is reportedly providing active support for the agreement, consistent with Berlin's longstanding policy of unwavering support for Israel. Critics note the partnership continues even as Israel's military operations in Gaza and its ongoing conflict with Iran draw international scrutiny. Regional context The proposed missile production comes amid escalating Middle East hostilities following the US-Israeli offensive against Iran launched Feb. 28, which has killed more than 1,340 people including former Supreme Leader Ayatollah Ali Khamenei. Iran has retaliated with drone and missile strikes targeting Israel and Gulf states hosting US forces, heightening demand for air defense systems like the Iron Dome.