March 24 (Reuters) - Volkswagen is in talks with Israel's Rafael Advanced Defence Systems over a deal that would shift production at one of the carmaker's factories from cars to missile defence, the
Volkswagen in talks over making air defence components at Osnabrueck plant, FT says
Volkswagen's Strategic Shift and Discussions with Defence Companies
Talks with Rafael Advanced Defence Systems
March 24 (Reuters) - Volkswagen is in talks with Israel's Rafael Advanced Defence Systems over a deal that would shift production at the carmaker's Osnabrueck plant from cars to missile defence, the Financial Times reported, citing people familiar with the plan.
Conversion of Osnabrueck Plant
The companies aim to convert the German factory to make components for the Israeli state-owned group's Iron Dome air defence system, the report said.
Volkswagen's Position on Weapons Production
Volkswagen said it continued to explore solutions for the factory, adding that while it was in discussions with market participants it ruled out the productions of weapons.
Reactions and Future Plans
Response from Germany's Defence Ministry
Germany's defence ministry declined to comment.
Plans for the Osnabrueck Site
Volkswagen wants to sell or reconfigure the site, which employs around 2,300 people, after the end of T-Roc Cabriolet production in 2027 as part of a wider revamp.
Previous and Ongoing Negotiations
Talks with Rheinmetall about a sale stalled late last year, but Volkswagen CEO Oliver Blume said earlier this month that the company remained in talks with defence companies over a solution for Osnabrueck.
(Reporting by Ananya Palyekar in Bengaluru. Additional reporting by Christoph Steitz. Editing by Shailesh Kuber and Mark Potter)
