From the Liveblog of
Friday, July 17, 2026
German state encouraging Israel’s Rafael to establish operations at Volkswagen plant
Add ToI as a Preferred Source on Google
The German state of Lower Saxony is interested in supporting plans by Israeli defense company Rafael to establish operations at Volkswagen’s Osnabrueck site, two people familiar with the matter tell Reuters.
The sources say various structures are being examined to facilitate Rafael’s entry into the site, where production of Volkswagen’s T-Roc Cabriolet is due to end next year.
One model under discussion is a split of the Osnabrueck operation into two companies, an option first reported by the Handelsblatt news outlet, though the sources say this is only one of several strategies being considered.
Rafael is interested in manufacturing components for Israel’s Iron Dome missile defense system at the plant. Reuters reported in April that the Israeli state-owned defense company had signed a letter of intent with Volkswagen regarding the site.
A second source familiar with the discussions says that Lower Saxony — where Volkswagen is based and where it operates five of its six western German assembly plants — is optimistic the project will succeed despite reservations from Qatar, one of Volkswagen’s major shareholders.
Volkswagen and Rafael do not immediately respond to requests for comment.
The Times of Israel Community.