Rheinmetall shifts automotive production to military

German defence company Rheinmetall is reportedly making strategic moves by transitioning two of its automotive factories in Germany to military production. This decision comes in response to the increasing defence spending, particularly for the ongoing conflict in Ukraine. The shift follows a trend set by startup Helsing, which has been establishing factories across Germany to manufacture drones for the Ukraine war effort.

The Rheinmetall plants located in Berlin and Neuss have faced challenges due to the automotive industry's downturn. Despite the transition to military production, the plants will still conduct some automotive manufacturing activities. They will now operate under Rheinmetall's Weapon and Ammunition division, leveraging the company's industrial strength as a major military equipment supplier.

"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 stated in a release to Reuters.

Recently, Rheinmetall secured a €26 million order from an Asian car manufacturer for its high-voltage coolant pump. The pump will be utilized in an 800V fuel cell-based architecture for small vans, trucks, and stationary power plants. Production is scheduled to commence in 2027 at the Hartha plant and will continue until 2031.

In a strategic move, Rheinmetall established the joint venture Rheinmetall Ukrainian Defence Industry with a Ukrainian state-owned company in October 2023. As part of this collaboration, a maintenance hub was inaugurated in western Ukraine in June 2024. The joint venture is responsible for supplying Ukraine with Marder and Lynx infantry fighting vehicles.

Similarly, in the United States, Rheinmetall consolidated its automotive production division under the name American Rheinmetall. American Rheinmetall Vehicles has partnered with Loc Performance to offer System Prime work, Tier 1 Component work, and Commercial work under a unified brand. This strategic alignment aims to enhance efficiency and streamline operations.

Rheinmetall Electronics UK, formerly known as signal processing specialist RFEL and located on the Isle of Wight, has been a part of the Rheinmetall Group since 2009. The UK division plays a crucial role in projects such as the Boxer vehicle and Challenger 3 tank, which are key components of the British Army's modernization programs.