Volkswagen is planning to manufacture components for the Israeli "Iron Dome" missile defense system at its Osnabrück plant, according to a report. The group is in negotiations with the Israeli state-owned company Rafael Advanced Defense Systems, the "Financial Times" reported, citing two sources familiar with the plans. The move is intended to save all 2,300 jobs at the Lower Saxony site, which is currently threatened with closure. The German government is actively supporting the project, another person familiar with the matter said.

A VW spokesperson stated upon inquiry that viable long-term prospects for the Osnabrück site are still being evaluated following the scheduled end of current production in 2027. Over recent months, the Osnabrück plant has developed various vehicle concepts to explore potential market opportunities and outlooks. Whether and to what extent concrete projects will emerge remains open at this stage. The spokesperson pointed to previous statements asserting that the production of weapons by Volkswagen AG is excluded.

Vehicle production at the former Karmann small-series plant in Osnabrück is slated to phase out next year as part of a cost-cutting program. According to the newspaper, various components for the "Iron Dome" would be manufactured there in the future, including the trucks used to transport the system's missiles, as well as launchers and power generators. The missiles themselves would not be produced at the site. The companies hope to market the system to European nations.

(Reporting by Olaf Brenner and Christoph Steitz; Editing by Scot W. Stevenson and Hans Busemann. For inquiries, please contact our editorial office at berlin.newsroom@thomsonreuters.com (Politics and Economics) or frankfurt.newsroom@thomsonreuters.com (Corporate and Markets))