Volkswagen is facing difficulties in concluding an agreement with the Israeli arms manufacturer Rafael due to Qatar.

Volkswagen is facing difficulties in finalizing an agreement with the Israeli defense company Rafael for the use of the Osnabrück plant, due to the opposition expressed by Qatar, one of the most important shareholders of the German car manufacturer.

The Qatar Investment Authority (QIA) holds approximately 17% of the voting rights of Volkswagen and has raised objections regarding collaboration with Rafael, considering the complicated relations between Qatar and Israel. This situation could delay a crucial project for Volkswagen within its restructuring program, in the context of declining car demand in Europe. The Osnabrück plant is operating below capacity, and Volkswagen is seeking solutions to utilize the available facilities.

The interest of the defense industry in the production capabilities of European car manufacturers has increased, and Volkswagen is exploring new sources of revenue. Neither Volkswagen, nor QIA, nor Rafael have publicly commented on this matter.