But some workers, particularly in Germany, are still wary of being associated with the arms industry.

There is also a risk of retaliation from Beijing.

Earlier this month, China put export restrictions on 14 defense and tech companies, including German defense giant Rheinmetall. While the actions were in retaliation for export restrictions placed on Chinese companies, automotive companies that dabble in defense could be at risk.

“European automakers need to tread very, very carefully because it is not just a quick win. It might seem as such, but once you get onto that chess board, you need to know how to play chess,” said Pacheco.

With his country’s biggest industry in deep trouble, Merz is trying to minimize the political backlash, warning voters in Saxony-Anhalt and Mecklenburg-Western Pomerania not to support the AfD in September’s elections.

“Take a close look; don’t let information from social media — no matter where it is coming from — be your only source. Instead, look at what the federal government is trying to accomplish,” Merz said earlier this month.