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With the fall of the Soviet Union, the political environment in Europe has changed dramatically, and security requirements for NATO countries have undergone a radical transformation. Yet, as illustrated by the recent bombing of Kosovo, restructuring of the defense industrial sectors in Europe lags behind the United States. The most egregious example is the armored vehicle sector, particularly in Britain, Germany, and France. Identifying five conditions necessary for restructuring the armored vehicle industry, this book looks at the absence or presence of these economic conditions in each of these countries and analyzes the impact on the armored vehicle industry.

Comparing these countries to the United States, where the armored vehicle industry has restructured as fully and as ruthlessly as the defense aerospace and electronic industries, the author shows private ownership, flexible capital and labor markets, a profitable scale of production, a lack of commercial diversification, and an active state defense industrial policy to be necessary prerequisites. All five factors exist in the United States, whereas two or more are missing in the European countries, retarding development of this industry.