BERLIN

German automaker Volkswagen is reportedly in talks with Israeli defense firm Rafael to establish a strategic partnership aimed at saving its Osnabruck plant, which faces the risk of production shutdown.

The Financial Times, citing sources familiar with the matter, said the cooperation would involve producing components of the Iron Dome air defense system at the facility, including launchers and transport vehicles.

The project, backed by the German government, aims to preserve around 2,300 jobs.

Volkswagen officials have not yet issued an official statement in response to Anadolu's inquiries on the matter.

The news comes amid continuing controversy over Germany’s stance on Israeli military moves in the Middle East, with polls showing broad public disapproval especially for Israel's actions in Gaza.