Once a symbol of Europe’s proud automotive tradition, several closed or downsized car factories across Western Europe are now being repurposed for defense manufacturing.

Not only Audi Brussels but also VDL Nedcar and Volkswagen Osnabrück are trading in automotive parts for military components. This reminds us of how the automotive assembly sector was transformed for military needs during World War II.

As geopolitical tensions rise, military budgets are reshaping the industrial landscape. In the Dutch town of Born, the massive former VDL Nedcar plant, where BMW MINIs rolled off the line until early 2024, is the latest in line of those being converted into a hub for military production. 

Lower dependence on foreign supply

The Dutch Ministry of Defense and VDL Group have struck a deal to house multiple defense companies at the site, including those focused on drones and military vehicles. The government will help cover costs like rent, calling the project a “flagship” of the renewed public-private defense cooperation.

“This move strengthens our strategic autonomy and reduces dependence on non-European suppliers,” said Dutch Defense Minister Ruben Brekelmans.

The factory, which once employed over 4,000 workers, with many cross-bordering from Belgium, has been idle since BMW ended production last year. While it’s unclear how many new jobs the site will generate, VDL has said it will hire as needed.

Finding a second act

The transformation in Born is not an isolated case. Across Europe, defense manufacturers are moving quickly to capitalize on vacant automotive facilities. The turnaround reflects a broad shift: after years of downsizing due to inflation, weak demand, and competition from China, the auto sector is finding a second act in arms manufacturing.

In Belgium, the recently closed Audi Brussels plant is attracting interest from defense company John Cockerill. The company is exploring the possibility of producing light armored vehicles on-site. 

Following its 2004 acquisition of French light armored vehicle maker Arquus, John Cockerill had long planned to set up a production line for military vehicles in Belgium. With the Belgian government now making a formal request, the Liège-based firm is ready to move forward.

Tank production at Volkswagen?

Meanwhile, in Germany, defense contractor Rheinmetall is eyeing Volkswagen’s scaled-down Osnabrück factory as a site for tank production. During the last earnings call, VW Group boss Oliver Blume already hinted at the defense sector helping out with production gaps created by the current industry crisis. Even automotive suppliers are jumping in as orders from traditional carmakers dry up.

France is seeing a similar push. The Fonderie de Bretagne, a foundry long tied to Renault, may be retooled to serve defense needs. Precision machining firm Duthion & Cie, once 90% reliant on automotive contracts, has set a goal of shifting half its business to defense.

The French government is encouraging this transition. President Emmanuel Macron has urged the industry to adopt a “war economy” mindset and promised a surge in orders.

‘Bazooka of investment’

Germany is also ramping up its spending, with Chancellor Friedrich Merz calling for a “bazooka of investment.” Automotive supplier Schaeffler, which employs 120,000 people globally and earns three-quarters of its revenue from carmakers, is among those pivoting.

CEO Klaus Rosenfeld says the group will explore defense opportunities — including weapons systems, drones, and tanks — using its underutilized factory capacity, especially in France and Germany.

While defense offers hope, it’s not a one-to-one replacement. The European defense sector employs less than one-tenth of the workforce employed in the auto industry.

Still, for factories facing closure and workers facing uncertain futures, the shift to military production may offer a much-needed second chance. But morally, building up a war machine is very different from serving mobility needs.