Israeli Defense Firm Wants to Buy VW's Old Factory to Build Missile Parts
The VW Onsabrück Saga
A few months ago, it was reported that a state-owned Israeli defense company had set its sights on Volkswagen's assembly plant in Osnabrück, Germany. The firm in question was Rafael Advanced Defense Systems, and it's responsible for building components for the Iron Dome, among other things.
The previous report stated that the plant will build vehicles used to transport artillery and power systems for the Iron Dome. However, an update from Reuters has claimed there are now advanced talks between Volkswagen and Rafael Advanced Defense Systems. At the time of writing, the two companies declined to comment regarding the matter.
What the Onsabrük Plant Made
If you, at some point, bought a convertible Volkswagen product within the last 70 years, chances are it came from Onsabrück. The current site was once Karmann, but when the company went bust in 2010, VW bought the facility to build some of its models over there.
Some historic vehicles built there include the Karmann Ghia, Beetle convertibles, several generations of Golf Cabriolets, and even some top-down Audis. Other models of interest include the first two generations of the Scirocco, the Corrado, and the Audi RS4 Cabriolet. BMWs, Fords, Nissans, and even Merkurs were built there at some point, so the plant was buzzing with activity at some point, and not just from Volkswagen.
Under VW ownership, the Onsabrück plant assembled the XL1 and Arteon Shooting Brake, as well as the Porsche Boxster and Cayman, Cayenne, and Skoda Karoq, to name a few. These days, however, it only builds the VW T-Roc Convertible, and that model will be discontinued by 2027. It's precisely for that reason that VW is reportedly considering other uses for the facility.
From Cars to Arms?
As mentioned, it was initially reported that military vehicles and Iron Dome components would be made in the plant. However, the more recent Reuters story also mentioned missile components, such as motors and propulsion systems. Mind you, it won't be making the explosive bits, but it's still for missiles, nonetheless.
Should Volkswagen accept Rafael Advanced Defense Systems' offer, it would help the German automaker secure a much-needed cash injection. At the same time, there's hope of saving all 2,300 jobs currently on the site. That said, the Reuters report adds that the German government wants full control over defense projects within the country and that the technology used should remain within its borders. That could mean the difference between the deal pushing through or being called off.
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This story was originally published May 2, 2026 at 10:30 AM.