Volkswagen to Shift Production to Missile Defense at One Factory in Deal With Israeli Company, Ft Reports

Volkswagen to pivot one plant to missile defence production for Israel's Rafael, FT reports

Volkswagen's Potential Shift to Missile Defence Production

Overview of the Reported Deal

March 24 (Reuters) - Volkswagen is in talks with Israel's Rafael Advanced Defence Systems over a deal that would shift production at one of the carmaker's factories from cars to missile defence, the Financial Times reported on Tuesday, citing people familiar with the plan. 

Responses and Verifications

Company and Government Reactions

Reuters could not immediately verify the report. Volkswagen and Israel's Rafael did not immediately respond to our requests for comment, while Germany's defence ministry declined to comment. 

Details of the Osnabrück Plant Conversion

Iron Dome Component Manufacturing

The plan would see Volkswagen's Osnabrück plant converted to manufacture components for the Israeli state-owned group's Iron Dome air defence system, the report said. 

Job Security and Sales Goals

The two companies, with this deal, hope to secure all 2,300 jobs at the Osnabrück site in western Germany, which has been under threat of closure, FT said, adding that they hope to sell the systems to European governments. 

Government Support and Timeline

German Government Involvement

According to the report, the German government is "actively supporting" the proposal. 

Production Timeline

Production could begin within 12 to 18 months, provided workers agree to switch to weapons production, the report said. 

Reporting Credits

(Reporting by Ananya Palyekar in Bengaluru; Editing by Shailesh Kuber and Alan Barona)