Qatar prevents an agreement that was supposed to save the jobs of thousands of Germans

The Qataris Torpedoed a Deal Between “Rafael” (Israeli company) and Volkswagen.

Due to the difficult crisis in which it finds itself, the giant conglomerate has decided to shift production at one of its plants to weaponry.

• Within the framework of the deal, the plant was supposed to manufacture components for Iron Dome batteries (defend sytem) — and provide work for thousands of Germans
• The Gulf state, which is a large shareholder in Volkswagen, imposed a veto.
• And also a sale deal of [Israeli company] “ZIM” is at risk of cancellation.

By Ze’ev Avrahami | Berlin, Israel Hayom newspaper 12-7-26:

The German automotive conglomerate is facing one of the most difficult crises in its history: Chinese vehicles are eating into its overseas sales, and Germany is failing to establish itself in the electric vehicle market.

The crisis has led the company to extreme decisions: massive layoffs, closing of production lines, and one of the plants received a green light from the management of Volkswagen to shift its production to weaponry. The agreement was signed with the Israeli company “Rafael”, with the plan to manufacture components for Iron Dome systems (defend system) at the plant. This was a decision that was supposed to save the jobs of thousands of Germans.

However, according to the newspaper “Bild,” the Qatari investment fund, which owns 10.4% of Volkswagen’s shares and 17% of the voting rights, intervened. According to the report, the Qataris put a veto on the decision because of the deal that was supposed to be made with the Israeli company. This was created after Chinese pressure, which has used billions of dollars to strengthen Hamas, was used in recent years to prevent Israel from producing defensive systems to protect against the organization’s attacks.

The decision by Volkswagen to agree to the deal to manufacture military weaponry was met with criticism from radical left-wing activists and the left-wing party in Germany, who claimed that the company must produce only for the civilian market. However, despite Volkswagen having already been forced to fire thousands of workers if it does not carry out reforms, its production line was already hit by heavy pressure. These protests calmed down once it became clear that Volkswagen was about to sign a deal with a, in their words, Israeli entity. Radical left-wing activists, along with part of the German Left Party, claimed that “it is impossible for the deal to go through, given the fact that the German government cannot accept a deal involving military operations in the entire Middle East.” They also accused Israel of “war crimes” because of the ongoing conflict.

Conversely, different sources in Germany claim that the Qatari veto on the economic situation of the state in general and of Volkswagen in particular could have an impact on German foreign policy, especially regarding the Middle East.

Volkswagen itself is owned by the Qataris, and it was announced that the company plans to continue to find additional avenues for cooperation to try to save the plant. Currently, there are 2,300 workers in the place, with the latest deadline for layoffs at the end of 2027.

But it is not only about Volkswagen.

According to “Bild,” it appears that a deal to sell the German shipping company “Hapag-Lloyd,” which was supposed to be purchased by the Israeli company ZIM for 4.2 billion dollars, is being cancelled. In this case, according to reports in the German newspaper, this is happening because of Qatari and Saudi involvement. The Qatari investment fund holds 12.3% of “Hapag-Lloyd” shares, while the Saudi fund holds 10.2% of the company.

According to reports in Germany, the deal was scuttled by officials in the German government and the security establishment, who understood that transferring ZIM to the hands of the German company would be a risk to an asset with strategic importance. As stated, “in light of the current state of emergency of the State of Israel, the sale was protected by the security interests of Israel.”

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