Struggling European Automakers Gain Timely Defense Relief-Report

Berenberg Bank says Europe’s weak auto market and heavy restructuring costs could be partly offset by rising NATO defense spending.

Automakers and suppliers with excess capacity may find new business from defense-related production opportunities.

Volkswagen, Renault, Schaeffler, and Aumovio were highlighted as potential beneficiaries.

But car demand remains soft, with China competition and war-related economic pressure still weighing on the sector.