Volkswagen’s planned defence deal with Israel blocked by Qatari investors

Volkswagen’s plans for a defence partnership with Israel’s Rafael have been vetoed by the German automaker’s Qatari investors, media reported Friday, Anadolu reports.

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 Osnabruck plant, the Bild newspaper reported.

The move comes after Volkswagen CEO Oliver Blume said in March that the company will stop manufacturing Volkswagen Group vehicles at Osnabruck starting in 2027 and confirmed talks with several defence firms about shifting the plant for military vehicles production. Blume provided no further details at the time.

The proposal has sparked significant controversy within Germany. Volkswagen employees, peace activists and opposition politicians have criticised the plan, arguing the automaker should focus exclusively on civilian production. The Osnabruck Peace Initiative (OFRI) has organised multiple protests in recent months urging Volkswagen to abandon any defence contracts.