Germany's leading defense industry group wants Germany’s car manufacturing to pivot to defense equipment as a major economic growth driver

The Federal Association of the German Security and Defense Industry (BDSV) pitched the idea last week while hailing the incoming government’s pledge to continue expanding the defense budget drastically. 

The European Union has nevertheless unveiled a plan, dubbed “ReArm Europe,” that could funnel more than €800 billion ($868 billion) to defense spending across the Union’s 27 member states.

To overcome production bottlenecks, the argument goes, why not repurpose manufacturing capabilities of Germany’s famed, but ailing, automobile sector?

Last month Rheinmetall announced it would repurpose two factories in Berlin and Neuss that previously made car parts - to produce primarily military goods instead

The head of the German defense industry lobbying group said he expected “wholly new dimensions to the question of arms demand,” including the need for faster deliveries, not just higher volume.

German-French joint venture KNDS recently acquired a historic rail car plant in Görlitz from French train maker Alstom. The factory will be retooled to produce components for military vehicles, including the Leopard 2 battle tank and Puma infantry fighting vehicle.

https://www.defensenews.com/global/europe/2025/03/10/defense-companies-jack-up-germanys-auto-industry-to-make-weapons-fast/