Volkswagen indirectly entering defense market via potential deal in Germany

Bloomberg reports that Israeli defense company Rafael Advanced Defense Systems and the German Volkswagen Group are close to an agreement on arms production at a plant in Osnabrück. Earlier, Israel wanted to produce 'Iron Dome' systems in Germany, but faced opposition from Volkswagen’s major shareholder, Qatar. Now, the plan is being restructured: the state of Lower Saxony may take control of part of the plant and form a joint venture with Rafael. Volkswagen itself will not directly participate in the deal. However, the source notes that the agreement is still not guaranteed.