Mercedes-Benz said it is open to the possibility of producing military equipment and expanding its presence in the defense sector amid rising military investments across Europe.
The information was confirmed by the company’s CEO, Ola Källenius, who told The Wall Street Journal that the automaker would be willing to enter the defense industry as long as the move is “economically viable” for the company.
The statement comes at a time of strong expansion in the European military industry, driven by increased NATO spending and the consequences of the war in Ukraine. Several traditional automakers are evaluating opportunities in the sector amid a slowdown in the automotive market and growing competition from China.
Although Mercedes has not yet announced concrete projects, the company already has a history tied to military production. The company manufactures heavy-duty Zetros trucks used by armed forces and also offers military variants of the G-Class utility vehicle for different countries.
In addition, Mercedes maintains a partnership with Rheinmetall in the development of the military vehicle Caracal, used by special forces from Germany, the Netherlands, and Ukraine. The model is based on technologies from the German manufacturer and was developed for airborne operations and high-mobility missions.
Other European automakers have also shown interest in the defense sector. Volkswagen, for example, is studying the possibility of converting part of its production to military vehicles, while French automaker Renault is analyzing projects related to the production of drones and military logistics equipment.
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