Can the Spanish automotive industry make a dent in the defense sector?

Madrid"The automotive industry can help other sectors in which Europe plans to invest heavily in the coming years." This phrase was uttered by Spanish Prime Minister Pedro Sánchez during the presentation of the shock plan in response to Donald Trump's tariffs in early April. At the time, the Spanish Prime Minister did not specify which sectors he was referring to; however, over the days, the defense sector has become a target, and the Spanish government's announcement of meet the 2% of GDP target for defense in 2025, with 10.471 billion euros, further strengthens the potential link. Now, can the Spanish automotive industry make a name for itself in defense?

First of all, it must be taken into account that this collaboration between the automotive and defense industries is already being discussed in countries like Germany, where the automotive industry is praying for an exit from the latent crisis it has been dragging on for some time. Without going any further, Oliver Blume, CEO of Volkswagen, pointed out that Telegraph the need to "reorient" car factories to this businessIn the Spanish case, for now, the focus has not been on the major automotive companies or their factories, but rather on auxiliary industries such as component manufacturing. In particular, the spotlight has already been placed on names such as Grupo Antolín.

This company from Burgos specializes in the manufacture of components for car interiors, from doors to roofs, among others, and has initiated a round of contacts with the Spanish government, but also with companies in the defense sector, to explore its collaboration as a supplier to this sector, as announced by Expansion and ARA has been able to confirm this from industry sources. Specifically, Grupo Antolín is exploring participation in the assembly of parts for armored or military vehicles.

The Ministry of Industry declines to comment on information that affects the private sector, although sources in the defense sector assure ARA that they have communicated agreements like this to the ministry headed by Jordi Hereu. In any case, for the same sources, Grupo Antolín is not the only one considered when asked about other component companies linked to the automotive industry that could be protagonists of a diversification like this. CIE Automotive, Ficosa, and Gestamp are other examples, explains a director of a company in the defense sector. "All of them would have the capacity to collaborate," he reiterates.

In the case of CIE and Gestamp, like Grupo Antolín, compatibility is linked to the machining or assembly of parts, stamping, and gears. In the case of the Catalan company Ficosa, the focus is on artificial vision systems. In fact, the same source recalls that this isn't the first time Ficosa has opened the door to participating in the defense sector.

Now, it's one thing for the automotive industry to have the capacity, and another to be able to adapt to defense and its demands. This second sector is characterized by its complexity and specificity in the parts. Thus, although the essence of the manufacturing process for a door, for example, is the same in the case of a car and an armored vehicle, the material used and the alloys (combinations of metals) can be completely different. Furthermore, defense is much more demanding in terms of obtaining certifications, as well as production: "In the case of the automotive industry, you have to make 200,000 parts; defense requires far fewer and higher added value."

What about the factories?

Regarding factories, automotive industry sources consulted by ARA challenge the idea that the Spanish situation is comparable to the German one. The explanation behind this is capacity, or rather overcapacity, in the German case. In Germany, the need to diversify the automotive sector is partly due to the workforce that may be unemployed in a context of transition from combustion vehicles to electric vehicles. "You can use the workforce for possible defense manufacturing," explains an industry source, who also highlights that Germany has its own parent companies and firms, unlike Spain, where there are no Spanish brands: "If the German government needed their help, it would be easier."

The seal of Spanishness

"A large part of the money we're going to mobilize will remain in Spain," Sánchez stated this Tuesday, directly targeting Spanish companies. Sources from the defense and automotive sectors agree in emphasizing the importance of Spanish capital in establishing relations between the two sectors. "Defense and security are issues that are too sensitive for foreign capital to enter," notes a defense source, adding that this is even more pronounced when it comes to the manufacturing of equipment.

As an example, The arrival of the Saudis at Telefónica (a strategic company with links to defense) meant the entry of the State into the share capital. to strengthen a hardline Spanish shareholder base. "The goal is to turn this security crisis into a stimulus for reindustrialization [...] the plan is designed to help Spanish companies develop their own production capacity in the medium term [of components] that are not currently produced in Europe," Sánchez reiterated.