German carmaker Volkswagen is negotiating with Israeli company Rafael to reorient part of its production to defense products. This involves the possible use of the plant in Osnabrück, which was previously planned for closure. This is reported by the Financial Times, writes UNN.
Details
The company is considering the option of producing components for air defense systems, including elements of the "Iron Dome" complex.
Products could include launchers, cargo platforms for transporting missiles, and generators. The production of the missiles themselves is expected to take place at separate sites.
Jobs and government position
The project could save about 2,300 jobs. According to sources, "the goal is to save everyone, possibly even ensure growth."
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The German government supports this initiative. Production could start within 12-18 months, provided that employees approve the changes.
Context and meaning
The negotiations are taking place against the backdrop of a crisis in the automotive industry and rising defense spending in Europe, which could exceed 500 billion euros by the end of the decade.
For Volkswagen, this is a way to avoid closing the plant, and for Rafael, it is an opportunity to expand its presence in the European air defense systems market.
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