Tel Aviv: Israeli company Rafael, via its German subsidiary Dynamit Nobel Defence (DND), is negotiating to acquire Volkswagen’s Osnabrück plant in Lower Saxony for Iron Dome component production, such as heavy trucks and launchers.
According to Israeli sources related to the plan, Volkswagen (VW) plans to end T-Roc Cabriolet production there in 2027 and is exploring defence repurposing to save ~2,300 jobs. Sources report a letter of intent signed around April 29-30, 2026, but both companies describe it as advanced discussions without a binding deal.
The Osnabrück site, acquired by Volkswagen in 2009, faces closure risks amid VW’s financial pressures and EV competition. Prior talks with Rheinmetall stalled last year. Production shift could start in 12-18 months if approved, leveraging Rafael’s existing German manufacturing like EuroTrophy.
Israeli defence sources say that transferring production will enhance the ability of Rafael to answer the demand for its products In Europe. The sources pointed to a number of recent deals of the Israeli company in Germany and Europe.
The German Air Force is acquiring 90 Litening 5 targeting pods for Eurofighter Typhoon aircraft in a deal valued at approximately €358 million.
Rafael secured a $2.2 billion deal to supply air defence systems to Romania, surpassing European competitors.
Rafael is supplying maritime electronic warfare (EW) self-protection systems to NATO European countries through partnerships with companies like Elbit Systems.
Rafael’s Spike anti-tank missiles are manufactured in Europe via Eurospike, a joint venture with European companies.
-The writer is an Israel-based freelance journalist. The views expressed are of the writer and do not necessarily reflect the views of Raksha Anirveda
