The German government will publish its new defence industry strategy, which aims to cut red tape and accelerate arms production, by the end of the year despite the collapse of the coalition, Defence Minister Boris Pistorius said on Monday.Germany, the largest backer of Ukraine in Europe, vowed to upgrade its eroded Bundeswehr army and boost defence as part of a “Zeitenwende” – or “turning point” – policy shift announced shortly after Russia invaded Ukraine in February 2022.“For too long, … the state has seen itself more as a regulator than as a partner to the defence industry,” said Pistorius at the ground-breaking ceremony of a new missile production site for MBDA in Schrobenhausen.“The task is to further strengthen our country’s defence industrial base in these times. Not only to maintain it, but to strengthen it,” Pistorius said. “We therefore want to specifically improve the framework conditions for an efficient security and defence industry.”
It looks like Volkswagen Group is headed for a historic closure of plants in Germany. VW Brand CEO Thomas Schaefer believes it will take three to four years for the company to restructure, and that can’t happen without some significant cuts.The CEO recently spoke with the German publication Welt am Sonntag, delivering a straightforward message: VW needs to reduce capacities “and adapt to the new realities.” Schaefer went on to say that, as of now, the company doesn’t see any way to reach its goals without closing at least one factory.
There are two German factories currently under consideration for closure. Volkswagen’s large facility in Osnabruck manufactures the Porsche 718 Cayman and Boxster, two vehicles that end production next year. Osnabruck also builds the Volkswagen T-Roc Cabriolet, and like the Porsche twins, its production run ends in 2025. The second facility is the Transparent Factory in Dresden, a much smaller location that builds the ID.3. It’s a low-volume plant that supplements primary ID.3 production at Zwickau.
Layoffs could accompany plant closures, too. Schaefer told Welt am Sonntag that employee attrition through normal means and early retirement packages won’t be enough to turn things around. Those who remain—including executives and board members—will almost certainly face salary cuts. According to Reuters, Executive Board salaries have already been reduced by five percent since the beginning of the year.
ThyssenKrupp, the largest steel maker in Germany, said Monday that it would eliminate up to 11,000 jobs by 2030, a decision that comes as the country struggled to overcome economic weakness that has hindered growth for nearly two years.The overhaul is aimed at returning ThyssenKrupp to profitability in the face of pressure from Asian competitors and high energy prices. Compounding the challenges, President-elect Donald J. Trump has threatened to impose tariffs on all goods imported to the United States. ThyssenKrupp was among those hurt by the tariffs Mr. Trump imposed on steel and aluminum during his first term in office.