Volkswagen Converts Car Plant as Part of Missile-Defense Deal, Newspaper Reports

24 March 2026

Volkswagen is in negotiations with Rafael Advanced Defence Systems, of Israel, about an agreement that would convert production at one of the German car group’s factories into anti-missile defense manufacturing. The information comes from the Financial Times.

According to a report published in the newspaper, the two companies plan to transform the already ailing Osnabrück plant to manufacture components for the Iron Dome air defense system, of the Israeli state-owned group.

With this, the two companies could preserve all 2,300 jobs at the plant located in western Germany, which had been under threat of closure. The systems produced there could be sold to European governments.

“The aim is to save everyone. The potential is enormous. But it is also an individual decision by the workers whether they want to be part of this idea,” said an anonymous source, who was said to be aware of the plans.
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James Whitmore

James Whitmore

I am a financial journalist specialising in global markets and long-term investment strategies, with a background in economics and corporate finance. My work focuses on translating complex financial data into clear, actionable insights for private investors and professionals. At Wealth Adviser, I contribute in-depth analysis on equities, macroeconomic trends, and portfolio construction.