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Volkswagen plant to start producing missile systems for Israel instead of cars

The German car giant is considering a radical move to save its struggling Osnabrück plant, replacing the production of passenger cars with components for the Israeli Iron Dome anti-missile system

Mar 29, 2026 12:30 51

Volkswagen plant to start producing missile systems for Israel instead of cars  - 1

A transformation is being prepared in the heart of the German state of Lower Saxony, which until recently sounded like a scenario from a military thriller. Volkswagen is conducting intensive negotiations with the Israeli state defense leader Rafael Advanced Defense Systems. The goal is clear - instead of the fading T-Roc Cabriolet model, whose production ends in 2027, the plant should start producing specialized heavy trucks, launchers and powerful generators for the needs of air defense.

This 180-degree turn is not dictated by militaristic ambitions, but by pure economic pragmatism. Pressed by aggressive Chinese competition and the stalled transition to electric vehicles, Volkswagen is looking for a lifeline for its 2,300 workers in Osnabrück. If the deal goes through, the plant could become a key hub for European security, as a number of countries on the Old Continent, including Germany, Greece and Finland, have already shown serious interest in purchasing the “Iron Dome“.

Interestingly, the transformation will not require colossal investments. According to sources in the Financial Times, existing lines can be re-equipped for military needs within just 12 to 18 months. It is important to clarify that the interceptor missiles themselves will not be assembled in Germany - they will be produced in a separate specialized facility. Here, the emphasis will fall on the logistical and energy “muscle“ of the system.

Despite the support of the German government, the project has not been without turbulence. The local community in Osnabrück is divided, and some employees express moral concerns about their retraining from car builders to weapons technicians. However, the management of the concern emphasizes that this is a chance not only for survival, but also for growth in a new, albeit unconventional sector.