Volkswagen to produce Iron Dome components for Israel

Volkswagen, one of Germany's largest and most iconic car manufacturers, plans to convert one of its factories in the historic city of Osnabrück to produce components for Israel's Iron Dome missile defense system. This project would be realized in collaboration with Rafael Advanced Defense Systems, part of the global Rafael Group, one of Israel's most well-known arms manufacturers.

The initiative reflects Volkswagen's growing challenges and those of Germany's vital automobile sector, where profits have plunged due to Chinese competition, technological lag, high energy costs, and trade tensions. According to the Financial Times, this project would mark "the highest-profile example yet of the German car industry trying to save itself by entering the booming defense sector."

This shift toward military production is part of Germany's broader and controversial response, which includes massive public debt to finance what critics call a form of "military Keynesianism" based on security threat illusions. Even traditionally government-aligned media like Der Spiegel have admitted this strategy might not work as an economic boost.

The collaboration has also raised ethical concerns, with some critics viewing it as part of Germany's complicity with Israel's actions, a policy that has influenced domestic political discourse and created international tensions. A recent UN report by special rapporteur Francesca Albanese has documented the expansion of collaboration between global companies and Israel's military sector.