German automotive industry shifts as defense sector expands

The German automotive industry is facing significant challenges, including geopolitical uncertainty, competition from China, and supply chain disruptions. Volkswagen Group, in particular, is navigating a period of instability, with plans to close several factories that could potentially impact up to 100,000 jobs.

In response to these shifts, the German defense sector is expanding and repurposing former automotive facilities. For example, a Rheinmetall plant in Berlin-Wedding, which previously manufactured diesel engine parts, has transitioned to producing 155mm artillery ammunition shells. While the transition has sparked protests from residents concerned about security and activists opposing arms exports, labor unions like IG Metall have noted that the shift has secured jobs for workers at the facility for the coming years.