Rheinmetall to Convert German Factories to Make Defence Equipment
Rheinmetall's plans to repurpose two of its automotive plants in Germany to mostly make defence equipment reflect the impact of an expected surge in spending on military equipment amid U.S. tensions over the Ukraine war, and highlight the growth of the European defence industry. The company's decision comes as Europe's political leaders are coming together to create a sustainable defence plan, and marks the second time within a month that a defence company has unveiled plans to convert existing manufacturing capacity. The move is also seen as a response to Germany's weak economy and declining automotive sector.
- This conversion effort could serve as a model for other European companies looking to diversify their product portfolios and tap into emerging defence markets, potentially leading to increased innovation and investment in the region.
- How will the increasing focus on defence spending in Europe impact the relationship between governments and private industry in terms of procurement and research and development?