Germany Reorients Its Industry from Automotive to Defense Sector
Automotive factories are being refitted for weapons manufacturing.
Illustrative photo. Photo: Krisztian Bocsi / Bloomberg via Getty Images
Germany is reorienting its industry from the automotive to the defense sector, writes The Wall Street Journal.
German automotive production is now in its longest period of stagnation since World War II, as it struggles with competition from China and falling demand.
Mercedes-Benz reported a 49% drop in profit for 2025, while Volkswagen, the world's second-largest automaker, stated that its profit fell by 44% over the same period, and announced plans to cut 50,000 jobs in Germany by 2030. Even at Porsche, operating profit plummeted by 98% compared to 2024, which was already one of the worst years in its modern history.
Now, with American security guarantees appearing less certain, and Europe rushing to rearm, Berlin is positioning itself as the backbone of the continent's defense industry.
For example, Schaeffler, one of the world's leading automotive component suppliers, producing everything from transmissions to bearings, is now becoming an important player in the defense sector. The company now manufactures engines for drones, onboard systems for armored vehicles, and components for military aviation.
Across Germany's industrial belt, factory lines are being re-equipped for the mechanisms of European rearmament.
Volkswagen is negotiating with Israeli companies with the aim of starting production of components for Israel's 'Iron Dome' system by 2027. A number of companies have introduced third shifts to churn out weapons and ammunition for Ukraine. Patriot interceptor missiles, long exclusively an American product, will soon begin to be produced in Germany to meet sharply increased demand.
According to government data, almost 90% of European venture capital invested in defense technologies goes to German companies.
Comments
Калі ўжо быць у Еўропе вайне за ардой- дык трэба быць узброеным да зубоў.
Раньше Германия авто продавала, получала со всего мира реальные деньги.
Теперь будет производить "на склад", и оплачиваться это будет из карманов самих немцев, из того триллиона, что ЕС вынет из карманов налогоплатильщиков. Акционеры военных производств обогатятся, но страна в целом обеднеет