A deal between Israeli firm Rafael Superior Protection Methods and German automobile large Volkswagen, which is able to embrace the manufacturing of elements for the Iron Dome air protection system at a manufacturing unit within the west of the nation, is “near being signed” and there may be already a written settlement between the events, German media shops reported right now.
In keeping with experiences, Rafael CEO Yoav Tourgeman visited Germany final week and met with authorities officers and senior firm executives to obtain closing approval for the transfer. A senior Israeli official had beforehand informed “Globes” that he estimates that the German authorities will assist the transfer, amongst different issues, as a result of its shut cooperation with Israel on air protection points.
In current months, experiences have emerged in Germany and the UK that the Israeli government-owned firm, which manufactures weapons and protection methods, will cooperate with Volkswagen, which is in monetary hassle, by buying manufacturing actions on the Osnabrück plant, which is scheduled to shut on the finish of 2027. This may imply the layoff of about 2,300, which has sparked tensions between administration and the corporate’s highly effective staff’ committee.
The three way partnership
In current months, Volkswagen has put the manufacturing unit up on the market and has tried to steer protection firms similar to Rheinmetall, KDNS and Rafael to take over the plant for the manufacturing of elements for his or her methods together with the truck chassis that carry the methods in addition to different elements. Now, in accordance with a report revealed right now on the “WirtschafWoche” journal web site, Rafael and Volkswagen have superior to the purpose the place there may be already a written settlement between the events. Final week, Tourgeman met not solely with administration but in addition worker representatives on the firm’s headquarters in Wolfsburg. In keeping with the small print obtained by the journal, Rafael and Volkswagen will set up a three way partnership for “manufacturing from the chassis degree to the elements degree for vans that can be used to hold fight methods.”
The plant in Osnabrück can be transformed from the manufacturing of cabriolet vehicles to the manufacturing of vans for the Iron Dome system and in addition for different future methods, such because the Iron Beam laser interception system.
A transfer that can save many roles
In keeping with the report, the enlargement of the partnership between the businesses is being examined to incorporate manufacturing of elements in two different Volkswagen crops in Germany, which might be part of the manufacturing chain of the brand new enterprise. The interceptors and a number of the extra delicate expertise can be manufactured in Israel and the US.
Volkswagen CEO Oliver Blume has beforehand acknowledged that the corporate is not going to change to weapons manufacturing however he doesn’t rule out the manufacturing of elements similar to vans, command and management automobiles and automobiles for safety wants. This place is meant to neutralize ethical opposition from the corporate’s staff’ committees.
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Manufacturing in Osnabrück, in accordance with the experiences, will for methods utilized in Europe solely. The Iron Dome system has already been bought to Finland and is within the technique of being permitted for different European international locations similar to Greece. Germany has not but introduced any procurement of the system.
The transfer will save many roles on the manufacturing unit, and can present a lifeline to Volkswagen, which is downsizing and dealing with monetary difficulties as a result of a serious decline in gross sales. Decrease Saxony, from which Protection Minister Boris Pistorius comes, holds 20% of Volkswagen’s shares, and Qatar’s sovereign wealth fund holds about 17%.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on Could 13, 2026.
© Copyright of Globes Writer Itonut (1983) Ltd., 2026.
