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German automakers shifting to weapons production — newspaper

According to the report, Germany’s industrial sector is experiencing its longest period of stagnation since World War II due to falling demand and competition from China

NEW YORK, April 20. /TASS/. The German automotive industry is shifting its focus from cars and auto parts to weapons production due to falling demand and Europe’s militarization, The Wall Street Journal reported, citing government statistics.

"Across Germany’s industrial belt, factory lines that once powered the country’s export miracle are being rewired into the machinery of Europe’s rearmament," the newspaper pointed out.

According to The Wall Street Journal, Germany’s industrial sector is experiencing its longest period of stagnation since World War II due to falling demand and competition from China. The country is losing about 15,000 industrial jobs every month, including in the automotive sector. According to the report, in 2025, automakers Mercedes-Benz and Volkswagen saw their profits drop by 49% and 44%, respectively. Porsche’s operating profit fell by 98% over the same period compared to 2024.

The newspaper noted that against this backdrop, Volkswagen is in talks with Israeli manufacturers over producing components for the Iron Dome missile defense system. The German auto parts manufacturer Schaeffler has begun producing engines for drones, onboard systems for armored vehicles, and components for military aircraft. Employees at many defense companies have begun working three shifts to produce weapons for Ukraine. German factories may also soon start manufacturing anti-missile rounds for the US Patriot air defense systems.

These changes are also being driven by government defense contracts totaling up to one trillion euros. The Wall Street Journal emphasized that nearly 90% of European defense investments go to German companies.

According to data from the Stockholm International Peace Research Institute (SIPRI), Germany displaced China from fourth place in global arms exports with a 5.7% share for the period 2021-2025, compared to the period from 2016 to 2020. Ukraine received 24% of its exports, and other Eastern European countries received 17%. Munich has become the center of Germany’s defense industry over the past few years.

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German automakers shifting to weapons production — newspaper

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