Overview
- Germany’s auto-heavy industry is shifting capacity into military work, with a Berenberg Bank report saying rising defense budgets create orders that can soak up idle plants.
- Plans include local production of Patriot interceptor components in Germany and Volkswagen talks to build parts for Israel’s Iron Dome by 2027.
- Suppliers such as Schaeffler and Deutz have retooled lines to make drone engines, armored-vehicle systems, and power units used with Patriot air defenses.
- Regulatory changes and big government contracts have opened nearly €1 trillion for defense, and almost 90% of Europe’s defense-tech venture funding now goes to German firms.
- German manufacturing is shedding about 15,000 jobs a month and 2025 profits plunged at Mercedes-Benz, Volkswagen, and Porsche, pushing leaders to steer workers into defense roles.