Volkswagen’s plans for a defence partnership with Israel’s Rafael have reportedly been vetoed by the German automaker’s Qatari investors.
Qatar’s sovereign wealth fund, Volkswagen’s third-largest shareholder, rejected management’s proposal to manufacture missile components and military vehicles at the company’s Osnabrück plant, according to Germany’s Bild newspaper.
The reported intervention comes after Volkswagen CEO Oliver Blume said in March that the company would stop producing Volkswagen Group vehicles at Osnabrück from 2027. He also confirmed that talks were under way with several defence companies over potentially converting the plant for military vehicle production, but provided no further details.
The proposal has sparked significant controversy in Germany. Volkswagen employees, peace activists and opposition politicians have urged the automaker to remain focused exclusively on civilian production.
The Osnabrück Peace Initiative has organised several protests in recent months calling on Volkswagen to abandon any involvement in defence contracts.
Germany’s opposition Left Party described the proposed cooperation with Israel’s state-owned Rafael Advanced Defense Systems as “unacceptable”, citing the Netanyahu government’s military campaigns across the Middle East and accusing Israel of war crimes and genocide against Palestinians in Gaza.
