Volkswagen is in talks with Israel’s Rafael Advanced Defence Systems over a deal that would switch production at one of the German group’s factories from cars to missile defence.
The two companies plan to convert the embattled Osnabrück plant to make components for the Israeli state-owned group’s Iron Dome air defence system, according to people familiar with the plan.
The tie-up would be the highest-profile example yet of the German car industry, where profits have plunged amid rising Chinese competition and a stuttering transition to electric vehicles, seeking partnerships with the booming defence sector.
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