Mercedes is willing to begin military and weapons production. Historically speaking, this did not work out so well for Europe the last time; however, as with all things German, the expanded backstory is a little more complicated.
Due to a combination of terrible political decisions related to the German and EU energy sector, the German industrial economy is contracting rapidly. Germany is the heart of the EU economic engine.
At the same time as the German economy is contracting, the economic footprint of China in the EU is growing. The core issue centers around a declining auto sector but extends to all ancillary manufacturing outputs.
By following the WEF’s “Build Back Better” program, Europe as a whole has ended up making itself energy-dependent and vulnerable. The Gulf oil and gas crisis, the looming 25% Trump tariffs on EU cars, and the withdrawal of U.S. troops from German NATO bases only add to their growing economic troubles.
Around the same time as this economic convergence, Germany began ramping up its commitments, support, and spending for Ukraine in the conflict with Russia. Subsidy outflows rose just as GDP was falling, a clear example of an economic spiral that can easily spin out of control.
German Chancellor Freidrich Merz is trying to deal with the consequences of exceptionally short-sighted and damaging policy, but reversing the trend would require Germany to focus all policy operations inwardly away from Brussels and the demands of the collective European Union. This is now the core issue in German politics driving bold dividing lines between political power structures.
One of the problems for Germany is the United States presence in the country historically meant they did not need to spend on their national defense. Instead, for decades they spent that money on subsidy programs and expanded German benefits. All was okay until President Trump started to pressure the German government to be self-sufficient. That means Germany had to change government policy.
President Trump has refused to put Tomahawk cruise missiles into U.S/NATO bases within Germany, and Germany has no medium to long-range missile systems. Now, they need to either purchase them or develop their own.
At the same time President Trump is drawing down U.S. military troop levels in Germany, and Germany has changed their conscription laws while requiring all fighting age men to register any extended external travel.
SUMMARY: The economy within Germany is shrinking, revenues to the government are less, the energy crisis means German citizens need subsidies, the promised payments to Ukraine are more painful, and at the same time the “coalition of the willing” are more confrontational toward Russia yet they realize they can no longer hide behind America’s apron. A hot mess.
Now, before getting to the point of this latest development, remind yourself that China owns a ten percent stake in Mercedes and the vehicles produced by the Chinese auto brand Geely are essentially the outcome of China extracting technology from that stakeholder share. This brand specific datapoint sits on the sidelines of Europe’s shrinking market share of automobiles as the Chinese share of the market grows.
May 15 (Reuters) – Mercedes-Benz (MBGn.DE), opens new tab CEO Ola Kallenius told the Wall Street Journal on Friday that the German automaker was willing to move into defense production as long as it made “business sense”.
[…] Earlier this week, German defense group Rheinmetall announced a partnership with Deutsche Telekom to develop a defense shield against drones. (source)
Germans, with a panda in the pocket of their overalls, are willing to start making military hardware to retain employment in the shrinking all-critical auto sector, that is being lost to China. Think about it.
History may not always repeat; but yes, it certainly does have a tendency to rhyme.
Add Hungary to their list of dependants following that dubious election. It may take President Trump a little longer to do the impossible but the difficult he does at once.
While he was a true realist, Orban was, domestically, a bit of a strict ruler in many areas. I’ll wait to see how Magyar uses the bucks coming their way now from the EU that had been held because Hungary was against EU bucks going into the Ukraine commode. Magyar is, to Hungarians, a bit of a center-right guy but time will tell. Admittedly the Witch of Brussells is happier now.
Well, That ought to turn well for everyone.
“Willing to enter military production” strikes me more as a political threat than a real policy decision.
since they seem so nostalgic to get back to fighting russians, perhaps they could also open up the volkswagen plants with slave labor?
Arbeit Macht Frei as they say.
The Nazi literally oozes from Chancellor Merz.
Will this impact car parts for used Mercedes here in US?
“Due to a combination of terrible political decisions related to the German and EU energy sector, the German industrial economy is contracting rapidly.”
“By following the WEF’s “Build Back Better” program, Europe as a whole has ended up making itself energy-dependent and vulnerable.”
These two Sundance quotes are the money quotes. Germany need read nothing more, because within them the solution presents itself to anyone with more than two brain cells to rub together: abandon the failed green energy policies and the build back better theories that caused the economic meltdown in the first place.
If you stop hitting yourself in the head with a hammer, the pain will stop. Go figure.
And, get the heck away from the WEF. Siding with Klaus, Soros and Bill Gates is a huge recipe for worldwide disaster. Enough of their bs. It is painful to think that so many world leaders are agreeing to these crazy policies.
Events outside of their control have arrived…including one Donald John Trump who has withdrawn the US from the delusional, absurd Climate Initiative. Daddy War(big)bucks has left world stage to these reprobate frauds. And many other stages besides. Their reality is not what was carefully planned.
There will be no “mea culpas” from a Euro cabal who see themselves as environmentally virtuous and still worship at the altar of Gaia, no matter how sotto voce they recant when faced with what was guaranteed to be the end result and the destructive folly when confronted with irrefutable evidence they were wrong, wrong, suicidally wrong.
The beatings will continue until morale improves.
Classic example of FAFO and well deserved. Their people are good, their politicians bad.
Build Back Better was a control vector backed by the WEF/Globohomo. Now with the rise of AI as the preferred control vector for the elites, we see the UN scrapping climate change models and the rise of coal consumption across Asia. Yet, team Green Scam remains silent as to the vast and unprecedented energy requirements to fund AI data centers.
What a colossal waste of economic value the burden of which, as always, falls to us Deplorables.
But meanwhile all the Green Idiot Lemmings sold on the CO2 scam the past 35ish years continue to scream about climate change, net-zero, ending fossil fuels, carbon sequestration and other moronic ideas.
It would have been nice if German industry and Mercedes Benz had the inexpensive and unlimited natural gas from The Nordstream Pipelines? 😎
Germany to begin military and weapons industrialization.,
Am I the only one with the heebie geebies?
Now look for the rise of a German or Austrian maniacal socialist leader…..
Building weapons does not improve your economy unless you have arms buyers lined up on a list….who might that be?
I think Ford kicked started the Reich off, back in the day. Before Spper completed their underground armament factories.
Was that an actual ‘model’ kit sold at that time? Looks very authentic.
We have been buying German automobiles exclusively for 20+ years. Hopefully the quality of their military products fares better than their cars as of late!
See Trapper’s line about the hammer above. Works for cars, too.
Why doesnt Germany drop their idiotic policies concerning energy and China this only makes sense if their leadership is to survive….it’s his neck too.
The EU bureaucracy in Brussels is a millstone around their necks.
German bureaucrats, being (ostensibly) big-hearted, empty headed and wholly dependent on outside help, are looking for heart, lung and brain transplants “t’day” (as the magnificent Dr. Ron Paul says). And no donors to be found. Nary a one. Hmmm…
Not only will they be responsible for their own defense, but they will also loose the USA dollars
spent by the USA military in their country.
The Germans have always been a problem. Always.
Yet they sit upon the largest industrial base in the entire EU.
The Iran situation is what the net-zero, carbon-trading class wanted.
Who needs oil? Keep it in the ground.
Conscription, nobody will bother, after 80 years of gelding their men, they just arent in the mood.
Maybe they will recruit all those muslim alpha males to herd the feminized German males.
The invaders can have all the women and children they want. It’s the same deal the UK offered their muslims.
Feast on our girl children, just vote for us.
Why would Russia want any part of Europe? No resources, disappearing manufacturing, a massive muslim and African parasitic welfare class.
This can’t end well or without violence.
That 6 wheeled car is what popped into my head before I got to it in the article.
I’m not too worried. Germany couldn’t win either WWI or WWII.
Doesn’t Mercedes have plants here in the US?Will those plants be fitted for military weapon production as well? Didn’t President Trump ask other auto manufacturers to do the same?
“reversing the trend would require Germany to focus all policy operations inwardly away from Brussels and the demands of the collective European Union.”
So, will they – or won’t they?
(give the EU/Brussels the middle finger)
Straights of Hormuz are never opening. Iran could accede to every demand and more, but they are not opening. Iran is not the threat to America and Western Civilization. The Threat comes from The WEF. Elites Leftism. Wokeness. A severe energy shortage is the way to defeat the suicidal ideology. Stone Age Living will wake them.