Rheinmetall shifts automotive production to military
German defence company Rheinmetall is reported to be shifting two of its automotive factories in Germany to military production.
This is expected to take advantage of a surge in defence spending in part for the war in Ukraine. This follows startup Helsing rolling out factories across Germany to produce drones for the Ukraine war effort.
The Rheinmetall plants in Berlin and Neuss have struggled with the downturn in the automotive industry. Both plants would be made part of Rheinmetall’s Weapon and Ammunition division but continue with some automotive production at the sites can still take place.
“Above all, the plants will benefit from the industrial strength that the Rheinmetall Group has as a major military equipment supplier, as well as from the high demand from customers in Germany and worldwide,” the group told Reuters in a statement.
Earlier this month the company won a €26 million order form an Asian car maker for its high-voltage coolant pump for use in an 800V fuel cell based architecture in small vans, trucks and stationary power plants. Production will start in 2027 at the Hartha plant and will continue until 2031.
Rheinmetall had already founded the joint venture Rheinmetall Ukrainian Defence Industry with a Ukrainian state-owned company in October 2023 and a maintenance hub was opened in western Ukraine in June 2024 under the umbrella of the joint venture. It ships the Marder and Lynx infantry fighting vehicles to Ukraine.
In a similar move in the US, the company has brought its automotive production division together as American Rheinmetall.
American Rheinmetall Vehicles is combining with Loc Performance to provide System Prime work, Tier 1 Component work, and Commercial work under a single, unified name.
Rheinmetall Electronics UK, formerly signal processing specialist RFEL on the Isle of Wight, has been part of the Rheinmetall Group since 2009 and is part of the Boxer vehicle and Challenger 3 tank team, which drives two of the most important modernisation programs for the British Army.
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