German automotive giant Volkswagen is in talks with Israeli state-owned defense firm Rafael to convert a struggling car manufacturing plant to produce parts for the Iron Dome, according to a new report, though the city where the plant is located is wrestling with the idea of switching to defense production as it awaits the results of negotiations.

The factory, which is located in the Lower Saxony industrial city of Osnabrück, has been slated to shut down since late 2024, but according to a report in the Financial Times, Rafael and Volkswagen hope to save some 2,300 jobs by converting it, and eventually to sell the Iron Dome system to European governments.

“The aim is to save everybody, maybe even to grow,” the report quoted someone familiar with the plans as saying. “The potential is so high. But it’s also an individual decision for the workers if they want to be part of the idea.”

According to the FT, citing a second source, the German government is “actively supporting” the plan.

There would be a certain irony to the move, with Volkswagen having its origins as the state-backed automaker of Nazi Germany.

Many in Osnabrück support the idea, including mayoral candidate Robert Alferink of the Social Democrat party: “We need to bring [new] companies to Osnabrück, not just focus on preserving what’s already here.”

Alferink conceded that he would prefer the plant remain an automotive factory, though he said anything that creates jobs in the city would be a welcome addition.

Local columnist Thomas Ludwig of the Neue Osnabrücker Zeitung also offered support for the plan, saying anyone interested in Germany’s........

© The Times of Israel