Throughout Germany's industrial belt, the lines that once created the export miracle of this country are being transformed into machines serving the European rearmament process" - The Wall Street Journal quoted data from the German government.
The report said that the German industrial sector is experiencing the longest period of stagnation since World War II due to weak demand and competition from China.
Germany loses about 15,000 industrial jobs per month, including in the automotive industry.
According to the bulletin, in 2025, Mercedes-Benz and Volkswagen recorded a decrease in profits of 49% and 44% respectively. Porsche's operating profit decreased by 98% compared to 2024.
In this context, Volkswagen is negotiating with Israeli manufacturers about the production of components for the Iron Dome missile defense system.
German auto parts manufacturer Schaeffler has begun manufacturing engines for drones, systems on armored vehicles and components for military aircraft.
Employees at many defense companies worked 3 shifts to produce weapons to supply to Ukraine.
Factories in Germany may also soon produce interceptor missiles for the US Patriot air defense system.
These changes are also driven by government defense contracts with a total value of up to 1,000 billion euros. The Wall Street Journal emphasized that nearly 90% of European defense investment is flowing into German businesses.
According to data from the Stockholm International Peace Research Institute (SIPRI), in the period 2021-2025, Germany surpassed China to rise to 4th place in global arms exports, accounting for 5.7% of total global arms exports. In which, Ukraine received 24% of Germany's exports, while other Eastern European countries accounted for 17%. The city of Munich has become the center of the German defense industry in recent years.
