Mercedes-Benz, one of Germany’s largest automotive groups specializing in the manufacture of premium vehicles, may begin military production, said the group’s CEO, Ola Källenius.
"The world has become more unpredictable, and I think Europe needs to boost its defense capabilities. If we have the opportunity to play a positive role in this, we will be ready to do so," he said in an interview with The Wall Street Journal.
Previously, Volkswagen CEO Oliver Blume stated his company’s readiness to begin producing military equipment for the German army as part of a pan-European rearmament effort.
Mercedes has been producing heavy trucks since 2021, including those used for military purposes. The company has also long offered military versions of its G-Class SUVs worldwide. Kellenius predicted that defense-related activities would account for “a negligible share of our business” compared to the production of passenger cars and light-duty trucks.
“(However) this could become a growing niche that will also contribute to our financial results,” he suggested. “So we’ll see.”
The company, like other Western automakers, is facing serious challenges, the WSJ notes. In 2025, the group’s profit fell by nearly half (USD 1.2 billion)—partly due to increased tariffs in the US, as well as growing competition from Chinese companies.
Earlier, it was reported that Volkswagen is in talks with the Israeli defense company Rafael Advanced Defense Systems regarding potential cooperation. As part of the agreement, plans are in place to convert Volkswagen’s idle production facilities in Osnabrück by 2027 to manufacture components for Israel’s “Iron Dome” missile defense system.
Against this backdrop, as the Ukrainian News agency earlier reported, NATO Secretary General Mark Rutte plans to meet with representatives of key European defense companies to agree on cooperation aimed at stimulating investment and ramping up arms production.
As early as next week, the business community may announce plans to increase arms production. According to one of the FT’s sources, during the meeting with Rutte—the date of which has not been disclosed—the issue of how to reduce dependence on Chinese and Taiwanese components will be discussed.
Who we are: About us, Contacts. How we write news and our principles: Editorial code. We did our best. If you found this valuable – please support us.
To request a correction, please send an email.