Ford has unveiled a new vehicle based on its popular Ranger series, a pick-up truck that has been redesigned to resemble a more robust, military-grade vehicle. The new model can carry a two-tonne load and tow up to four tonnes. It is currently on display at Ford's Dagenham plant, where 2,000 workers still manufacture engines. Over the past decade, the production of three-litre diesel engines at the plant has decreased from 90,000 per year to about 45,000. Ford is now looking to pivot toward military vehicles, as the UK boss of Ford describes the current environment as the most challenging since the invention of the motor car. This shift comes as the European car industry, once a global leader, seeks to leverage rising defense budgets to reinvigorate its industrial capacity. Ford is part of a joint venture with defense specialists General Dynamics and Ricardo, bidding for a contract with the UK Ministry of Defence (MoD) to supply 9,000 military vehicles over the next five to seven years. These vehicles would replace the Army's aging fleet of Land Rovers. Lisa Brankin, chair of Ford UK, emphasized the opportunity to demonstrate the company's ability to meet defense needs. This is not Ford's first foray into defense work; during World War Two, Ford's Dagenham plant was the largest in Europe and was converted entirely to military production, manufacturing 360,000 vehicles for the Allied war effort. Ford workers in Manchester also produced 34,000 Rolls-Royce-designed Merlin engines for fighter planes. The UK and European car industries are hoping that increased defense spending can counter what one supplier has called a "terminal decline" in the sector. As Europe commits hundreds of billions to ramp up defense spending due to concerns over Russia and the US's reduced role as a protector, carmakers are exploring opportunities in the defense sector. Ford is not alone in this shift—Renault has partnered with Thales to produce military drones, aiming for an output of up to 1,000 units per month. Volkswagen has agreed to sell an under-used factory in Germany, which will be transformed into a military manufacturing hub through a joint venture with an Israeli-based defense investor. Meanwhile, Jaguar Land Rover (JLR) is also bidding for the same MoD contract and has created a new business unit to support its global military ambitions. The UK car industry, heavily reliant on a few major manufacturers, is facing long-term challenges. Mike Hawes of the Society for Motor Manufacturers and Traders (SMMT) noted that under-utilized auto manufacturing capacity can be repurposed for defense. However, the industry has been in decline for the last eight or nine years. JLR recently announced the reduction of 4,000 jobs from its 30,000-strong UK workforce to remain competitive, particularly against Chinese manufacturers. Industry leaders have urged the government to assist in transitioning to aerospace and defense, warning that large-scale car production in the UK may face long-term decline. An open letter to key officials highlighted that the automotive supply chain is not in decline but is in the wrong market, with redundancies signaling early signs of strain on a sector supporting about 183,000 jobs. Across Europe, the auto industry is navigating what Sigrid de Vries of the ACEA auto industry manufacturers' association calls "a perfect storm." Automakers are investing heavily in electric vehicles, but government sales targets for EVs are outpacing consumer demand. Increasingly, the EVs being bought are from Chinese manufacturers like BYD, Chery, and Geely, which are expanding rapidly into Europe. European brands are struggling to match the low costs and speed of production by their Chinese rivals. Volkswagen has announced plans to cut 100,000 jobs in the coming years and has already closed one plant in Germany, with more closures possible. Industry estimates suggest that European car plants have about 2.5 million vehicles worth of annual spare capacity, prompting automakers to look enviously at defense budgets. To offset the costs of idle assembly lines, European automakers are opening their doors to Chinese rivals. Stellantis has taken a 20% stake in Chinese EV maker Leapmotor, with production set to begin in Poland. Nissan and Chery International UK have signed a non-binding agreement for contract manufacturing. Volkswagen CEO Oliver Blume has considered sharing spare factory capacity with Chinese joint-venture partners. While this may offer short-term benefits, it does not necessarily create or save European supply chains, as some plants may only perform final assembly, with key components, such as batteries, coming from China. Despite these shifts, car manufacturing remains central to countries' sovereign manufacturing capabilities, with the loss of the Australian car industry serving as a cautionary tale. Ford UK's Lisa Brankin acknowledged that the new military contract is a small fraction of past production, but emphasized the importance of pursuing every opportunity. A spokesperson for the Ministry of Defence highlighted the significance of UK industry in delivering modern defense vehicles and noted that 85% of defense spending stays in the UK, supporting reindustrialization and growth.