“…The Federal Association of the German Security and Defence Industry last year proposed repurposing idle auto capacity for defense output, as Berlin began unlocking hundreds of billions of euros in new military spending under the country’s ambitious rearmament plans and the EU’s ReArm Europe framework.
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Under a prospective deal, the facility would manufacture support components for the Iron Dome − heavy-duty transport trucks, launch units and power generators − rather than interceptor missiles, which Rafael plans to produce at a separate German facility. Regarding the jobs at the plant, an insider told the FT the goal was to “save everybody, maybe even to grow.”
The talks come as Volkswagen contends with its worst financial performance in nearly a decade. The group’s operating profit collapsed 53.5% in 2025 to €8.9 billion ($10.3 billion), and net profit fell 44% to €6.9 billion − the lowest since the “Dieselgate” scandal.
VW announced plans in March to cut 50,000 jobs in Germany by 2030, including at subsidiaries Audi and Porsche. Negotiations to sell the Osnabrück plant to Rheinmetall stalled, and the defense giant ultimately turned down the deal in mid-March…”