The conversion of these factories is expected to mitigate production bottlenecks affecting Germany’s defence industry. Additionally, companies involved in this transition may benefit from the European Union’s proposed ReArm Europe fund, which, if implemented, would allocate over €800 billion to strengthening Europe’s defence capabilities.
Industrial giant Rheinmetall AG is reportedly considering acquiring Volkswagen’s Osnabrück plant. The company believes the facility could be adapted relatively easily for manufacturing combat vehicles, such as the KF41 Lynx infantry fighting vehicle.
Beyond Osnabrück, two additional factories in Berlin and Neuss, previously supplying automotive components, are also being considered for defence equipment production. Meanwhile, defence electronics company Hensoldt AG is reportedly in discussions to employ around 200 workers from Continental and Bosch, reflecting the challenges faced by the German automotive sector.
The shift from civilian to military manufacturing is not limited to the automotive industry. Recently, the French-German joint venture KNDS purchased a rail wagon factory in Görlitz from French train manufacturer Alstom. This facility is set to produce components for military vehicles, including Leopard 2A8 tanks.
With the German automotive industry struggling, defence companies are seizing the opportunity to expand their production capacity. The BDSV has urged the future federal government to support the transition by providing financial and organisational assistance for factory repurposing and workforce retraining
