German Arms Industry Courts Auto Workers and Factories Amid Crisis
As Germany's automotive industry faces severe sales and employment crises, the arms industry is actively recruiting skilled workers and acquiring vacant factories for military production. The VW plant in Osnabrück, set to close in 2027, has attracted interest from Rheinmetall, KNDS, and Israeli firm Rafael. KNDS already converted a former Alstom train factory in Görlitz to tank production, retaining the workforce. Automotive suppliers like Dräxlmaier, Schaeffler, and ZF are partnering with arms firms to produce armored vehicles, drones, and tank components. However, analysts warn that arms production is a supplement, not a replacement, for the automotive sector: the arms industry employs only 20,000 people versus 800,000 in autos, and 225,000 auto jobs are expected to be cut by 2035. The conversion is driven by NATO's 3.5% defense spending target and global rearmament, but the market remains small relative to automotive needs.
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