Rafael Bypasses Qatari Boycott to Produce Iron Dome Components at Volkswagen Plant
Rafael Advanced Defense Systems is set to manufacture components for the Iron Dome missile defense system at Volkswagen's Osnabrück plant in northern Germany, circumventing a Qatari veto on partnerships involving the Iron Dome manufacturer. Qatar's investment fund owns 17% of Volkswagen shares and has opposed collaboration due to its ties with Hamas. However, the German state of Lower Saxony, which holds 20% of Volkswagen, may partner with Rafael instead, potentially investing up to 200 million euros in the project. Olaf Lies, President of Lower Saxony, stated they are exploring ways to leverage the skilled workforce at Osnabrück for sustainable economic development.
Volkswagen plans to cease car production at the Osnabrück plant by 2027 as part of a broader cost-cutting strategy that includes eliminating around 100,000 jobs globally. The plant, operational since 1902 and known for producing Volkswagen cabriolet models, currently faces closure, with efforts underway to find new operators to keep it active. Rafael intends to produce Iron Dome launchers, generators, and convert trucks for missile interception mobility, though it has not disclosed specific clients. Rafael already manufactures Spike missiles and Trophy active protection systems for the German army and other customers, suggesting possible future sales of Iron Dome systems to Germany or other European buyers.
The European automotive industry, especially in Germany, is grappling with high production costs, the transition to electric vehicles, and increasing competition from Chinese manufacturers like Chery, BYD, and MG. German car sales in China are declining, while Chinese companies are expanding their European market share and starting local production. The Osnabrück plant is one of four Volkswagen factories slated for closure amid these challenges.
