Qatar Moves to Block Rafael Deal for Volkswagen Plant in Germany

Qatar is trying to derail a deal under which Israel’s Rafael would buy a Volkswagen factory slated for closure in Germany and use it to make Iron Dome components, Reuters reported. According to the report, Qatar would rather see the plant’s 2,300 workers lose their jobs than have the site converted to military production for an Israeli company.

Reuters said Qatar’s investment fund holds 17% of Volkswagen’s voting rights, representing a stake worth about $10 billion, making it the carmaker’s third-largest shareholder after the Porsche family and Lower Saxony. Qatar also holds two of the 20 seats on Volkswagen’s supervisory board, the company’s top oversight body.

Volkswagen is seeking a buyer or operator that can keep the Osnabrück plant running and prevent additional 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.

Olaf Lies, the premier of Lower Saxony and a Volkswagen supervisory board member, called on the company to find a long-term solution for the Osnabrück site. “I expect the company to live up to this responsibility and present the decisions announced on time. The state will provide constructive support wherever it is appropriate and possible,” he told Reuters.