Struggling European Automakers Gain Timely Defense Relief-Report [Forbes]
RENAULT SA UNSP/ADR (RNLSY)
NASDAQ:AMEX Investor Relations:
group.renault.com/en/finance-2
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Source: Forbes
But one side effect of global turmoil offers investors some comfort; increased defense spending presents a potentially lucrative lifeline. A report from Germany's Berenberg Bank said the urgent requirement to increase military spending, as NATO nations respond to President Trump's criticism that they have relied for too long on U.S. largesse for armaments, finds defense manufacturers short on capacity. At the same time the auto industry is being forced to lay off workers and shut redundant factories. About 50,000 German auto-sector jobs were lost in 2025. Analysts and trade groups predict about 200,000 more jobs could go by 2030. If Germany is suffering so badly, you can expect other European automakers to be hurting even more. In a lifeless market, China's success with electric vehicles will have serious consequences. Berenberg Bank said Europe's automotive sector faces chronic overcapacity. “The vast majority of European automotive suppliers have already initiated large-scal
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