finance
Volkswagen to Repurpose Factory for Iron Dome Components; Renault to Manufacture Drone Structures in France
Volkswagen is negotiating with Israel's Rafael Advanced Defense Systems to convert its Osnabrueck factory, slated for 2027 closure, into a site for Iron Dome missile defense parts. Separately, Renault Group announced a January partnership with Turgis Gaillard to produce drone structures for France's military.
May 4, 4:30 AM·1m read2 sources
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Volkswagen is in talks with Israel's Rafael Advanced Defense Systems to retool its Osnabrueck, Germany, factory for producing components of the Iron Dome missile defense system. The plant, which manufactures the T-Roc passenger car, had been scheduled to close in 2027. A photograph of the facility was taken on March 27, 2026.
The discussions aim to repurpose the site amid broader shifts in Europe's automotive sector toward defense production. In a related development, Renault Group, a French multinational corporation known for car production, announced in January a partnership with France-based startup Turgis Gaillard to produce up to 600 drones per month. This effort supports the French Ministry of the Armed Forces.
Renault will handle manufacturing only the drone's structure at its Le Mans plant. The partnership falls under the Chorus project, a long-range strike drone designed as France's response to Shahed-type threats. France aims to bring the Chorus project into production, with Renault contributing expertise to rapidly industrialize the program.
Renault was specifically tapped for its industrialization skills. Analysts have described European car manufacturers as exploring extra production space to capitalize on increased defense spending from local governments.
