State of the World from NPR Struggling German Industry Turns to Defense Manufacturing
Oct 23, 2025
Rob Schmitz, NPR correspondent from Bavaria, dives into Germany's industrial crisis. He reveals how the automotive sector, once thriving, has lost over 51,000 jobs, pushing companies to pivot toward defense manufacturing. Interviews with CEOs like Martin Buchs show how automation and military contracts are saving jobs. Deutz's CEO, Sebastian Schulte, discusses their transition to military engines amidst fierce competition from China. The shift highlights the pressures of new military spending and the need for adaptation in a changing economy.
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Rapid Decline In German Auto Employment
- Germany's auto sector is shedding jobs rapidly, losing over 51,000 roles in a year, about 7% of its workforce.
- Inflation, tariffs, and Chinese competition are driving firms to diversify or downsize.
Automotive Supplier Shifts To Drones
- Job Group repurposed its injection molding and machining lines to build military drones and unmanned vehicles.
- CEO Martin Buchs said the company signed its first defense contract this year to avoid further layoffs.
Technical Fit Between Auto And Defense Work
- Companies with precision machining and molding find defense work technically adjacent to automotive production.
- CEOs describe the transition as straightforward because military standards match industrial clients' strict requirements.