The upside-down “e” is the “schwa” symbol. It is often used to denote the “e” before the “r” in words, because that “e” is underpronounced and does not really sound like a hard or soft “e.” Schwabenland is the traditional home of the Schwabian people, in southeastern Germany, Northeastern Austria, and western Hungary. Thus, the U-Boat Kapitan is making this comment.
Wasn’t this the plot of The Iron Giant?