2 Rheinmetall plants to stop producing cars and focus on weapons production

German defense concern Rheinmetall intends to refocus two of its enterprises from producing cars to producing military equipment.

Reuters reported this on Tuesday, February 25.

The expansion of Rheinmetall's defense sector will affect plants in Berlin and Neuss, where the company currently produces car parts.

It is noted that car production in Germany is currently facing problems as automakers struggle with high costs and competition from abroad.

According to Rheinmetall's plans, both plants will become part of the concern's division engaged in the production of weapons and ammunition. They will serve as so-called hybrid plants, ensuring the possibility of producing some car parts.

In a comment to Reuters, the company said that final decisions on the new structure have not yet been made. Rheinmetall also emphasized that the enterprises in Berlin and Neuss will not produce explosives, but they will produce protective equipment and mechanical components for military needs.

Reuters writes that such a decision by Rheinmetall could give an impetus to the development of German production at a time when traditionally strong industries, primarily automakers, are reducing capacity and thousands of jobs.

As the Ukrainian News agency earlier reported, on February 19 it became known that Rheinmetall and the German government signed an agreement for USD 270 million, which will be aimed at supporting the German armed forces.

Recall, earlier this month, Rheinmetall CEO Armin Papperger said that his company would benefit if the fighting in Ukraine ceased, since the countries of the European Union would continue to invest in defense.