Volkswagen’s discussions with Israel’s state-owned defence contractor Rafael over a potential future for the automaker’s Osnabrück plant have been complicated by concerns raised by Qatar’s sovereign wealth fund, according to people familiar with the matter cited by Reuters.
Volkswagen’s plans to find a new use for its Osnabrück factory — a site that employs about 2,300 people — have run into political and shareholder sensitivities as the carmaker explores defence-industry options ahead of the scheduled end of vehicle production next year.
Reuters reported, citing three people familiar with the discussions, that Qatar’s sovereign wealth fund has raised issues about Volkswagen’s talks with Israel’s state-owned arms maker Rafael, pointing to Qatar’s lack of formal diplomatic relations with Israel and Doha’s role as a mediator in the Israel-Hamas conflict.
Rafael has shown interest in using the Osnabrück site to manufacture components for Israel’s Iron Dome missile-defence system, and has signed a letter of intent to buy the plant, Reuters reported, citing sources.
Qatar exerts significant influence at Volkswagen through the Qatar Investment Authority (QIA), which Reuters said holds about 17% of the company’s voting rights and has two seats on Volkswagen’s supervisory board. Volkswagen, the supervisory board and the QIA declined to comment to Reuters.
Two sources cited by Reuters said the German state of Lower Saxony — another major Volkswagen shareholder and home to both Osnabrück and Volkswagen’s headquarters in Wolfsburg — could be brought into the project, potentially through a joint venture structure, in an effort to reach a solution.
Lower Saxony state premier Olaf Lies, who sits on Volkswagen’s supervisory board, declined to comment directly on Qatar’s role but urged the company to move quickly on a long-term plan for the plant.
"I expect the company to live up to this responsibility and present the announced decisions in a timely manner," Lies told Reuters. "The state will provide constructive support wherever it is appropriate and possible."
