Automotive giant Volkswagen is reported to be in discussions with Israel’s Rafael Advanced Defence Systems to produce missile defense at the Osnabrueck plant in Germany instead of cars.
While it remains unclear if the talks are the result of ongoing military operations against Iran, Reuters reports that the aim is to shift the VW factory from making cars to producing components for the Israeli state-owned group’s Iron Dome air defense system.
Volkswagen confirmed that it is in talks with interested parties, but it ruled out the production of defense components. At present, the manufacturing plant employs around 2,300 people.
However, the German brand intends to sell or reconfigure the site after the end of production of the Volkswagen T-Roc Cabriolet in 2027. Talks were also reported with Rheinmetall last year, but the discussions stalled.
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Germany’s defense ministry refused to comment.
Volkswagen’s Porsche Backtracks on EV Strategy
This news arrives amid Volkswagen’s long-term restructuring, which will see 50,000 employees being laid off by 2030. The restructuring applies to several brands owned by Volkswagen AG, such as Porsche.
The luxury car brand made a U-turn on its EV policy, meaning Porsche will now focus on strategies to produce more cars that run on internal combustion engines and hybrid technology. However, this decision will cost the company $4.5 billion.
MotorBiscuit recently reported that, due to weak demand, Porsche abandoned its all-electric platform for hybrid cars. As a result, the company had to recalibrate several processes last year. The declining market share in China and U.S. import tariffs made matters worse and added to overall costs.
Porsche CEO Michael Leiters recently revealed that the company will have to cut jobs to reduce expenses. He said:
“Since I took office, our management team has systematically analysed the situation and begun a series of initial targeted measures. These include the consistent application of our Value over Volume principle, especially in the difficult market environment of China; and the quality-oriented ramp-up of production of the all-electric Cayenne.
“We will streamline our management structure, reduce hierarchies and cut back on bureaucracy. We have also already begun to focus more strongly on our core business.”
He added:
“We are using the current challenges as an opportunity to act even more decisively. We will comprehensively reposition Porsche, make the company leaner, faster and the products even more desirable.”
