Qatar is trying to derail a deal that would let Israel’s Rafael buy a Volkswagen plant in northern Germany and convert it to make Iron Dome components, Reuters reported on September 23, 2024. According to the report, the Gulf state would prefer to see the plant’s 2,300 workers lose their jobs rather than have the site repurposed for military production tied to an Israeli company.
The plant in Osnabrück currently makes the convertible version of the T-Cross, which is set to leave production in 2027 without a replacement. Volkswagen has been looking for years for a new operator to keep the factory running and avoid further layoffs as it cuts tens of thousands of jobs amid weaker sales in China and the United States and growing competition from Chinese brands in Europe.
Reuters said Qatar raised concerns in the talks between the two companies, reflecting the emirate’s complicated relationship with Israel. Qatar’s investment fund holds 17% of Volkswagen voting rights, a stake worth about $10 billion, making it the company’s third-largest shareholder after the Porsche family and Lower Saxony. It also has two of the 20 seats on Volkswagen’s supervisory board, while workers hold 10 seats and have an interest in preserving jobs in Germany.
Spokespeople for Volkswagen, the group’s supervisory board, and QIA declined to comment to Reuters. Lower Saxony premier Olaf Lies, who sits on Volkswagen’s supervisory board, also declined to address Qatar’s role directly, but urged the company to find a long-term solution for the Osnabrück plant. “I expect the company to meet this responsibility and present the announced decisions on time. The state will provide constructive support wherever this is appropriate and possible,” he said.
