Volkswagen mulling Israeli arms deal FT
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Published on March 25, 2026.
German auto giant Volkswagen is considering repurposing one of its Osnabruck, Lower Saxony, plant to produce components for Israeli arms company Rafael Advanced Defense Systems. The move is part of Volkswagen's cost-cutting and restructuring plan, which is backed by the German government. If approved, the conversion could take 12 to 18 months. Rafael is said to have chosen Germany partly due to its reputation as a strong supporter of Israel. This move comes amid ongoing concerns over aluminum production by major Gulf producers and uncertainty over future shipments.
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