Historical shift: German civilian companies switch to weapons production - FT

Last week, Deutz engines manufactured by more than 20% after the announcement of intentions to create tank engines except for the production of motorcycles. The Mittelstand Engineering Group reviews or terminates a prohibition on defensive contracts. For a long time, the German business avoided the defensive sector through the Nazi past. The rules have changed after the start of the full -scale war of the Russian Federation against Ukraine.

The first in the taboo breakthrough was the manufacturer of Trumpf lasers and the manufacturer of Hawy Hydraulik components. The fighting is ready to make a historical shift in the German economy, says political scientist Katherine Klyver Ashbrook. Not only manufacturers but also society are ready. PWC Germany scribbled showed that almost 70% of the population supports the increase in defense costs.

"Russia's aggressive war against Ukraine has undoubtedly intensified the awareness in our society that freedom needs to be protected by military means, if necessary," Daimler Truck said, which received a contract for the supply of 1500 trucks to Canada. It is noted that the displacement in the defensive sphere occurs with another shock - a decrease in demand from China and the transition for auto manufacturers to electric vehicles.

In fact, in Germany there is the opposite situation from the Cold War. Previously, the defense industry was to rebuild for civilian production, then civilian production should be reoriented to the military. For example, Continental is one of the leading automotive suppliers of 200,000 employees. They are forced to go to reduce people, but in parallel they offer people to settle in Rheinmetall.

Lufthansa Technik, which has contracts for servicing about a fifth of all aircraft, officially launched a military sides service. The unit plans to help support German Chinook helicopters and F-35 fighters. "This is a great way to develop technology. Innovations come from the defense world and find the way to civilian use, and vice versa," said Suzanna Vigand, executive director of RNK, who produce details for tanks.