Israeli defense firm Rafael eyes takeover of VW’s Osnabruck factory, German lawmaker says

Israeli defense company Rafael is in talks to take over Volkswagen’s Osnabruck plant as the automaker phases out car production in the northwestern city after 2027, a German lawmaker said Thursday.

Bastian Ernst, a conservative lawmaker from Chancellor Friedrich Merz’s Christian Democrats (CDU) with prior experience in the defense industry, confirmed the discussions to the German news agency (dpa).

“There are talks between Rafael and Volkswagen,” he said, noting that the site could produce components for Rafael’s Iron Dome air defense system, including heavy trucks, launchers, and other parts.

“This is a win-win situation. We would have Israeli expertise in Germany, and the Israeli state-owned company would have a production facility that is not threatened by war,” he said.

Volkswagen CEO Oliver Blume said earlier this week that the company would cease manufacturing Volkswagen Group vehicles at Osnabruck starting in 2027 and was negotiating with defense firms to repurpose the facility.

“I am very confident we will reach a decision this year,” Blume told tabloid Bild. “We will not produce weapons. We will contribute our ‘know-how’ where we are best. Vehicles for military transport could be one direction.”

The Osnabruck plant has been a focal point for debate amid shifting production plans. Critics, including the Osnabruck Peace Initiative, have urged Volkswagen to preserve civilian manufacturing and reject any defense deals. The group vowed to continue pressuring management, unions, and local politicians.

The opposition Left Party also condemned the prospect of cooperation with Rafael, calling it unacceptable in light of the Israeli government’s military campaigns in the region and what it described as a genocidal war in Gaza that has killed tens of thousands of civilians.