From Cars to Combat: Germany’s Shift in Manufacturing

Germany, long known for its automotive prowess, is witnessing a quiet but significant transformation. As traditional car production slows, a new industry is taking flight—literally. Across southern Germany, start-ups and engineers are pivoting from cars to combat drones. One such innovation is the “Falke,” a drone designed for both civilian and military use, capable of high speeds and long-range missions. Its creators emphasize affordability and mass production, leveraging materials and techniques from the automotive sector. This shift is not isolated. Near Munich, drone developers are collaborating with car part suppliers, repurposing their expertise and infrastructure to meet the growing demand for military-grade drones.

A New Industrial Identity

The war in Ukraine has accelerated this trend. Companies like High Cat are already supplying drones to the front lines, designed to resist jamming and deliver real-time reconnaissance. These aren’t just tech experiments—they’re the result of serious engineering, often funded by private investors who once shied away from defense ventures. Even packaging companies are adapting, creating climate-controlled transport cases for drones. The transformation is industrial and cultural: Engineers and entrepreneurs are learning to think like soldiers, designing for battlefield conditions. Automotive suppliers, facing declining orders, are finding new life in defense manufacturing, applying their precision and scale to drone production.

Tapping into the €500 Billion Opportunity

Germany’s defense sector is poised for further growth, thanks to a €500 billion special fund aimed at strengthening national security. This fund opens doors for manufacturers across the country, especially those with existing capabilities in high-precision production. Companies that once hesitated to enter the arms industry are now reconsidering, driven by both financial incentives and a growing sense of responsibility to defend democratic values. With the right support and strategic partnerships, Germany’s factories could become key players in Europe’s defense landscape—transforming economic uncertainty into industrial opportunity.

This video summary was created by AI from the original DW script. It was edited by a journalist before publication.