German auto giant Volkswagen announced Monday that one of its plants would be converted to make defense equipment for the Israeli group Rafael after car production ends there next year.
The struggling carmaker said it would sell the Osnabrueck plant to Tel Aviv-based Aurelius Capital as well as the German state of Lower Saxony, VW's second-largest shareholder, with an initial air defense project planned for Rafael Advanced Defense Systems.
Volkswagen has faced mounting scrutiny after reports in May suggested it could produce components for Israel's Iron Dome system.
Germany remains one of Tel Aviv's closest allies, alongside the United States, despite Israel's genocidal campaign in Gaza, the expansion of settlements in the occupied West Bank, and its actions in Lebanon and Iran.
Monday's deal offers a potential blueprint for other Volkswagen sites facing an uncertain future as Europe's largest carmaker embarks on its biggest ever restructuring.
