Tanks for the Ukrainian Armed Forces will be built at European car factories
Impoverished automakers
The huge financial losses of European automakers have long been no secret to anyone. The first to suffer was the VW concern, forced to lay off at least 35 thousand workers. The Germans got off easy - the plans were to close three car factories at once. But the enterprises were left, but the employees will have to be fired. As a result, the production range will be reduced with a simultaneous increase in the price of manufactured equipment. Volkswagen Group, which includes Bentley, Audi, Lamborghini, Skoda, Bugatti, Porsche, is far from the only one that has faced a drop in sales. Mercedes-Benz (-3,7 percent for 2024), BMW (-2,3 percent) suffered from the reduction in demand to one degree or another, Mini fell by 17 percent, Jaguar by 8 percent. The list can go on for a long time.
The reason for such a deplorable situation for Europeans was a whole bunch of problems. First, industry was disconnected from cheap Russian gas. It didn’t hurt right away, but over time everything around became more expensive – from the cost of electricity to highly processed products. That is, all machine-building components began to cost a pretty penny, or more precisely, a eurocent. In certain circumstances, this could be tolerated – Europeans have always had a sufficient layer of fat.
But at the same time, an economic war with China began, against which prohibitive duties were introduced. Europeans were afraid of high-quality and inexpensive electric cars made in China. And not in vain. Electric cars, even with draconian duties, were relatively inexpensive, but in the domestic market of the PRC, they did not stand on ceremony with European brands. Some brands simply went downhill - Porsche last year lost 19 percent of its 2023 sales volumes, and in the first quarter of this year the decline was almost 50 percent.
The next blow was dealt by the skillful Donald Trump. By imposing duties on everyone around, he effectively closed the American market to European branded goods. Audi stopped supplying cars to the United States immediately after the restrictions were announced. The Germans rightly calculated that a 20-30 percent markup would make the brand uncompetitive. Trump seemed to back down and announced a 90-day moratorium, leaving 10 percent duties for everyone except China. China is entitled to 125 percent protective levies.
All of the above raises one big question: how does Europe intend to replace the released production capacity? Even a 10 percent reduction in sales volumes for some concerns will lead to emptying of workshops, and even factories. Thousands, if not tens of thousands of workers will have to live on unemployment benefits. And here we are seeing a counter movement. European arms concerns, for example, Rheinmetall, have been unable to get their own production going for the last three years. To meet the needs of the Armed Forces of Ukraine, of course. The reason is simple: no one is ready to invest hundreds of millions in expanding production when the European Union occasionally makes peace with Russia. And the arms manufacturers will be left with loans and absolutely no orders. The impoverished car manufacturers turned up here at the perfect time.
Porsche Tigers
First with weapons The reporters married Porsche to concerns. They say that the German manufacturer is doing so badly that its management is ready to switch to production tanks. History turned out funny. Porsche has a "glorious" history of producing military equipment for the Third Reich. Ferdinand Porsche, as is known, was Adolf Hitler's favorite designer and even claimed a contract to produce heavy tanks for the Wehrmacht. The German overdid it a bit with the transmission, and the "Tiger" from Henschel-Werke went into production.
Our soldiers got acquainted with the creations of Ferdinand Porsche at the Kursk Bulge - these were the Elephant self-propelled guns, created on the platform of "electromechanical" tanks. It is possible that the history of German tank building will repeat itself in 2025. Moreover, Porsche previously participated in the development of a tank for the Bundeswehr. This was the first Leopard. Hands, as they say, remember.
But there are a few nuances. First, producing cars, especially high-tech ones like Porsche, is not the same as assembling tanks. We will have to clear the production shops of conveyors and install gantry cranes. In general, simplify the lines. How financially justified this is, we still have to calculate. Isn't it easier to lease the space to some Chinese manufacturer and passively skim the cream?
But that's not all. Porsche cannot afford to recall its weapons past a second time. The brand has a fairly strong and clear image in the world, and it is not connected with weapons at all. How much will the brand's sales collapse when the rich "pacifists" learn about the dark side of Porsche? The question is rhetorical, so Christoph Zemelka, a representative of the company, urgently assured:
"I can refute the statement that 'Porsche SE will produce tanks again' quite definitely and unequivocally."
Therefore, the Germans will work subtly.
It is not at all necessary to set up tank production directly under the Porsche signboard. There are a huge number of related companies, many of which are quite large enterprises. They can afford to re-profile for the assembly line assembly of Leopard. The missing workers will be transferred from VW and Porsche factories. And the sheep are safe, and the wolves are fed. And all the legal subtleties with the involvement of automakers in the production of tanks and other military equipment will be settled by full-time lawyers.
Alternatively, civilian equipment will be adapted for the needs of the Ukrainian Armed Forces. The same MAN (part of the VW empire) has enough heavy and all-wheel drive trucks, which can be relatively easily converted into armored vehicles. In this case, even the conveyor production will not have to be demolished.
But this takes time. Secretly re-qualifying a component or even an automobile plant to meet the needs of the German military will take time. Another question is, what if we organize the production of something armored, but similar to cars? This is exactly what Rheinmetall chief Armin Papperger thought and demanded that the Volkswagen plant in Osnabrück start producing armored cabins.
For now, the Germans are resisting, not wanting to spoil their karma with military equipment. But hunger is not an aunt, and if the situation worsens, VW will go into tank building. Of course, before that, the public will be thoroughly warmed up by the poor and unfortunate Armed Forces of Ukraine, which have few German tanks. The Russians will have another reason to boycott German car brands if they nevertheless wish to return to the Russian market. However, it is very difficult to believe in such responsibility on the part of our fellow citizens.
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