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On Monday, May 8, 2023, the Gear Tank Gear Track transfer to the Renk AG production hall in Augustus, Germany.
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Manufacturer of tank parts Color It looks at the talents from the auto -storage sector, as it strives for scaling and growth of fuel as a result of increasing geopolitical tensions and growth of military costs.
Earlier this year Germany passed Historical Fiscal Package This allowed for a steep increase in the cost of protecting the largest economy in Europe. The 27-member state bloc increases its efforts to defend against the background of the war in Ukraine and increasingly intense partnership on the security of transatlantic security.
ColorThe world leader in creating a gearbox for tanks is one of the defense firms that have Seen his action Back to increase military costs. This year’s stock price increased by 300%and his order book jump In the first quarter from 164% to 549 million euros ($ 622.3 million).
To keep up with stunning demand, defense companies such as Renk, Hansoldt. Reinmetall Increasingly, they cooperate with the automotive industry. This is a sector that has historically been one of the most important economic pillars in Germany but faced Basic difficulties A competition from China and the United States has increased from the country’s sluggish economy.
For Renk, this cooperation was mainly composed of the employers from the automotive industry, which was used by CEO Alexander Sagel and previous work experience in the sector.
Previously, Sagel held positions in Rheinmetall and Daimler, which has been renamed Mercedes-Benz Group AG, while Schiller worked in different managerial roles in Mercedes-AMG GmbH.
In an exclusive interview with Renk headquarters in Augustus, Germany, CEO Sagel told Annette Weisbach CNBC that the provider of the tank members saw a number of applicants from the automotive industry and “of course”, which will use such experts.
Schiller confirmed the tendency, adding: “We are really looking for engineers who have such education that can adapt to our industry and bring the methods we have in automotive as constant improvement, as the principles of the defenders, to improve efficiency – this is what we really are looking for.”
The ability to “kill two birds with one stone”
A branch of the largest trade union in Germany, Ig Metall, Nizhny Saxony, said CNBC that they considered cases of defense firms aimed at qualified workers and working together with German manufacturers and manufacturers.
“These developments go against the background of two parallel dynamics: the automotive industry is experiencing a deep transformation-wave process (appear): electrification, digitization, new mobility concepts-at the same time sector associated with protection, expanding due to political decisions and increasing defense budgets,”-spoke Translated by CNBC.
Although there are technological connections between two branches and creating jobs, Ig Metall warns about “unilateral accent on industrial policy”, which can provide work in the short term, but based on an unstable security environment. “Our goal must be strong peace, not continuous rethinking,” the press secretary said.
In A Note Deutsche Bank Since March, analysts led by Adrian Koks explained that excessive power is a problem in Europe, especially in Germany, where they estimate that 100,000 jobs are now at risk. Car factories lie in idle mode, while the defender remains “jump”, analysts said, adding that experienced car workers can benefit the defense industry because it “goes to serial production and greater profitability.”
There is “a historical opportunity to kill two birds with one stone, turning some (Germany) machine into military production,” analysts commented.
“The German automotive industry is now increasingly talking to the neighboring sectors,” said the German CNBC Press Secretary of the German Association (VDA).
“Unlike industry, Germany is no longer an international competitive as a business place,” they said, adding that “welcome everything that modernizes Germany as a production place to preserve and create growth, prosperity and jobs in Germany.”
Asked about the transition from cars to defense, Monica Schniac, chairman of the German Council of Economic Experts, told CNBC’s Squawk Box Europe On Tuesday, this is a chance “we have to capture”.
Considering the guarantee that the car industry will be fired, these workers will “need anything in another”, and so it will be a key “to facilitate this transition, actually bringing people from one company to another company where they are needed,” she added.
