India, March 27 -- German automobile giant Volkswagen is all set for a landmark shift from car manufacturing at one of its factories to help Israel with its missile defence production - in a move linked to economic uncertainty, Germany's ties with Israel, and some cues tracing back to the Second World War and Nazi Germany.

The German automaker is in talks with Israel's Rafael Advanced Defence Systems to make components for Iron Dome air defence system, the Financial Times has reported.

The potential deal would see one of Europe's largest automakers shift towards defence manufacturing amid uncertain future over geopolitical and economic risks and a broader push towards strengthening Europe's defence capabilities.

Volkswagen has been loo...