Volkswagen car plant to be converted for Israeli arms production –The German factory is expected to produce components for Rafael’s Iron Dome air-defense system under a newly signed preliminary deal | 8 Sep 2026 | German auto giant Volkswagen has agreed on plans to sell one of its factories and convert the site into a military production hub, with Israeli arms manufacturer Rafael Advanced Defense Systems set to become its first major industrial partner. Volkswagen announced on Monday that it had reached an agreement with the state of Lower Saxony and Israeli investment company Aurelius Capital on key terms for the sale of its Osnabrück plant. Under the plan, Aurelius would become the majority owner, while Lower Saxony would also take a stake in the facility. The factory would then be gradually transformed from car manufacturing into what Volkswagen described as a “competence center for security and defense solutions.”