Germany shifts industry toward defense production

German automakers are shifting their industrial focus from civilian vehicles to defense production, driven by declining demand and Europe's militarization. The Wall Street Journal reports Volkswagen is in negotiations with Israel to produce components for the Iron Dome missile defense system. Meanwhile, Schaeffler has begun manufacturing engines for UAVs, onboard systems for armored vehicles, and parts for military aviation. This pivot marks a significant transformation of Germany's industrial base amid economic stagnation and heightened regional security concerns.