In June 1944, as World War II was nearing its end, Nazi Germany launched the "V1" — developed by aircraft manufacturer Fieseler — toward London after the Allied Normandy landings sharply turned the tide of the war. Named "Vergeltungswaffe" (retaliation weapon), the V1 was the world's first cruise missile, featuring a cigar-shaped fuselage loaded with explosives and fitted with wings and a jet engine. Although its accuracy was low, it is regarded as having opened a new chapter in military and aviation technology. Volkswagen, a key Nazi munitions manufacturer at the time, produced the V1 alongside military vehicles.
The Financial Times recently reported that Volkswagen is pursuing a partnership with Rafael, Israel's state-owned defense company, to produce equipment for the "Iron Dome" missile defense system. The plan involves converting Volkswagen's factory in Osnabrück, Lower Saxony — which faces closure due to financial difficulties — into a production base for key equipment including Iron Dome missile-mounted trucks, launchers and power supply units. Last year, Volkswagen CEO Oliver Blume also told German local media that the company was considering entering the defense industry. While Volkswagen will not directly manufacture missiles like the V1, this marks its first return to core defense weapons system production since World War II.
This move is part of a self-rescue effort to overcome declining demand caused by fierce competition from China and delays in the electric vehicle transition. A strategic calculation also underlies the decision — to seize rapidly growing European defense demand following the Russia-Ukraine war as a breakthrough for market expansion. Volkswagen's defense comeback carries significant implications for K-Defense as well. K-Defense has been targeting the European defense market with outstanding cost-competitiveness and rapid production capability. South Korea has achieved notable feats, including exporting K2 tanks to Poland and Chunmoo multiple rocket launchers to Norway.
The South Korean government has established a vision to "leap into the world's top four defense powers" and is aggressively pushing export drives. However, concerns are rising that once local manufacturers like Volkswagen fully enter the defense market, South Korea's comparative advantage could erode under "Buy European" procurement policies. Now is the time for K-Defense to move beyond simply expanding exports and accelerate its strategic evolution.