The German automotive group Mercedes-Benz Group is considering expanding its operations and entering the military equipment market. At the same time, civilian vehicles will remain the company’s core product.
Mercedes-Benz Group CEO Ola Källenius spoke about this in an interview with The Wall Street Journal, as reported by Deutsche Welle.
“The world has become a more unpredictable place, and, in my view, it is quite clear that Europe needs to strengthen its defense capabilities. If we can play a positive role in this process, we will be ready to do so,” Ola Källenius stated.
According to the top executive, the group’s entry into the defense sector is possible provided that it is ‘economically viable.’
The new business will account for only a ‘negligible share’ of the group’s overall portfolio, but Ola Källenius predicts that this sector could become a ‘growing niche.’
Currently, the German company already has a separate division of Daimler-Benz AG that develops and manufactures cars and trucks, including all-wheel-drive vehicles of the Unimog family, Zetros trucks, and military versions of the G-Class SUVs.
Another major German automotive group—Volkswagen—is also considering similar steps toward a possible transition to defense production.
According to journalists, Volkswagen management is in talks with the Israeli defense company Rafael Advanced Defense Systems regarding potential cooperation.
The parties are discussing the possibility of converting the German group’s plant in Osnabrück, which is currently facing financial difficulties.
The company plans to launch production of components for Israel’s Iron Dome missile defense system at this facility.
As a reminder, French automaker Renault will produce long-range drones for Ukraine in cooperation with the defense company Turgis Gaillard.
At the same time, they declined to comment on the value of the contract or the number of drones to be produced.
