From cars to tanks: How Germany's defence industry could boost its economy

Germany's economy, long dominated by the automotive industry, is finding a new engine for growth—defence. As Europe ramps up military spending, a shift is underway, with weapons manufacturers repurposing car factories to meet rising demand. Tanks, radars, and artillery are now rolling off assembly lines that once churned out cars (via Reuters).

The global need for European self-sufficiency in defence, especially in light of tensions with Russia, has sparked a unique collaboration between struggling carmakers and ambitious defence firms. Companies like Rheinmetall and Hensoldt are already shifting production from auto parts to military equipment, filling the gap left by the sluggish car sector.

With defence spending expected to increase significantly, particularly in the EU, Germany is eyeing a potential boost to its GDP and job creation, with the prospect of revitalizing its industrial infrastructure. If this shift succeeds, it could provide not just military strength, but a significant economic lift. For now, it remains to be seen how the situation will unfold.