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Israel’s Rafael to produce missile parts at Volkswagen factory in Germany

The Cradle | September 7, 2026

Rafael Advanced Defense Systems plans to begin manufacturing parts for Israel’s Iron Dome missile systems at the Volkswagen factory in Osnabrueck, Germany, WirtschaftsWoche reported on 7 September.

According to the German business magazine, Volkswagen will sell the plant to a consortium which will include the German federal state of Lower Saxony and a Bavarian investment fund.

Volkswagen is streamlining its operations in Germany as industrial production in the country slows following the loss of cheap Russian natural gas after the start of the Russia–Ukraine war and the destruction of the Nord Stream Pipeline in 2022.

The German automaker will also close four factories, laying off up to 50,000 employees.

Olef Lies, minister-president of Lower Saxony, participated in the negotiations and will announce the new partnership on Monday.

The Financial ​Times (FT) first reported in March that Volkswagen and Rafael were in talks to shift production at the Osnabrueck ​plant from cars to missile components.

Rafael had planned to build missile parts and motors, rather ​than explosives, which would be manufactured at a separate facility, ​the sources speaking with FT said.

A deal between Volkswagen and Rafael for the sale of the plant was reached in April.

However, it was blocked by the Qatar Investment Authority (QIA), which holds 10 percent of Volkswagen shares and 17 percent of its voting rights.

To bypass Qatari opposition, Lower Saxony was brought in to help purchase the factory alongside Rafael and Aurelius Capital, a Munich-based investment fund.

The Osnabrueck plant currently employs 2,300 employees. It is unclear whether employees will retain their jobs or what employment protections they will receive.

Volkswagen reportedly plans to sign a memorandum of understanding (MoU) with Aurelius Capital to protect workers’ rights at the factory.

The Iron Dome, Arrow, and David’s Sling missile defense systems have helped Israel wage the genocide in Gaza and wars on Lebanon, Iran, and Yemen by shielding Israel from retaliatory missile and drone attacks.

A shift from automobile to missile production would mark Germany’s renewed focus on manufacturing weapons amid the ongoing wars between the US and Iran, and Ukraine and Russia.

Germany and NATO are strong supporters of Ukraine and say they are preparing for a direct conflict with Russia in the coming years.

Support for Israel’s security is at the core of Berlin’s foreign policy, German leaders have stated, citing as justification the country’s Nazi past.

Der Spiegel revealed last week that despite the genocide in Gaza, Berlin has approved nearly $930 million in military equipment exports to Israel during the first half of this year alone.

September 7, 2026 - Posted by | Economics, Ethnic Cleansing, Racism, Zionism, War Crimes | , ,

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