Critics slam Volkswagen plan to produce arms with Israel's Rafael

Volkswagen's proposal to manufacture military equipment with Israel's Rafael at its Osnabruck factory has drawn fresh opposition from German politicians and peace activists after reports emerged that the state of Lower Saxony could invest public funds to circumvent earlier shareholder objections.

Lower Saxony weighs rescue

The German automotive giant confirmed in March that it was exploring defense partnerships for the Osnabruck site — which is scheduled to end vehicle production after 2027 amid falling profits and weaker demand in China. Qatar's sovereign wealth fund blocked the initial proposal in July, but management has since revived the concept through a structure that would transfer portions of the facility to Lower Saxony ownership, according to recent German media reports. The Hannoversche Allgemeine Zeitung stated that the state could invest at least €200 million ($232 million) to manufacture components for Israel's Iron Dome air defense system, including launchers and transport vehicles.

Left Party rejects conversion

Thorben Peters, co-chair of the Left Party in Lower Saxony, told Anadolu that thousands of jobs and industrial expertise must be preserved without shifting to arms production. "Replacing civilian production with military production cannot be the answer to the automotive industry's current crisis," he said, adding that the state should not use public funds for an arms-related venture. "We reject the false claim that the only alternatives are unemployment or arms production," Peters stated.

Historical and legal concerns

The debate carries particular weight in Osnabruck, which markets itself as the "City of Peace" for hosting the 1648 negotiations that ended the Thirty Years' War. Marie Dominique Guyard, spokesperson for the Osnabruck Peace Initiative, noted that the city suffered extensive bombing during World War II when it housed arms-related industry, with 65% of the municipality destroyed including 95% of its historic old town. "When arms factories are once again established in the city some 80 years after the last war, one can only despair at the decision-makers' disregard for history," she told Anadolu, arguing that production for Rafael amounts to de facto support for Israel's wars against Palestinians, Lebanon and Iran. She cited the International Court of Justice's 2024 advisory opinion finding Israel's presence in occupied Palestinian territory unlawful, alongside International Criminal Court arrest warrants for Prime Minister Benjamin Netanyahu and former Defense Minister Yoav Gallant on war crimes allegations. Peters said his party opposes military conversion as a matter of principle, but stressed that the Gaza war demands particular scrutiny given "massive human rights violations" and allegations of breaches of international law. Volkswagen's supervisory board is scheduled to meet on September 4 to discuss the restructuring plans.