'Anything but autos': Can defense save Europe’s ailing car industry?
European automakers pivot to defense amid sales slump.
The European car industry is grappling with a severe crisis, driven by declining electric vehicle demand, increased competition from Chinese manufacturers, and rising borrowing costs. In a bid to revive sales, automakers like Renault and Volkswagen are exploring defense manufacturing, leveraging their historical expertise in the sector. However, unions caution that this shift may not adequately address the industry's deeper structural issues, as the defense sector operates under different production dynamics.
Key Takeaways
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Renault is developing a ground-based drone and aerial drones in partnership with Turgis Gaillard.
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Volkswagen is in talks with Rafael to convert its Osnabrück factory for missile defense production.
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The Stoxx 600 Automobiles index has fallen 30% over the past five years.
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