In an interview with the Wall Street Journal, the head of Mercedes-Benz, Ola Källenius, hinted that the German car manufacturer could venture into the defense sector.
The head of the German car manufacturer Mercedes-Benz did not rule out entering the armament sector in an interview with the American newspaper Wall Street Journal published from Friday night to Saturday. “The world has become more uncertain, and I think it is clear that Europe needs to strengthen its defense profile,” declared Ola Källenius, the president of the board of Mercedes-Benz.
“These statements come in the context of Germany’s rearmament in the face of the growing Russian threat since the invasion of Ukraine in February 2022. The German defense industry is benefiting greatly from this trend, as seen in the rise of Rheinmetall in recent years. On the other hand, German car manufacturers like Mercedes-Benz or Volkswagen are facing a major crisis, caught between tariffs and tough Chinese competition.”
At the end of March, the CEO of another German automotive giant, Volkswagen, Oliver Blume, had said to be “in contact” with armament companies, particularly involved in missile defense, to repurpose one of its German factories for the production of military transport equipment. According to the Financial Times, discussions are taking place with the company Rafael Advanced Defense Systems, which designed the Israeli Iron Dome.
“Strategic development axis”
Asked by AFP about Ola Källenius’ interview, a Mercedes-Benz spokesperson emphasized that the group “has been providing chassis to specialized companies for many years that equip and market them under their own responsibility and brand for military applications.” “Our activities in the field of security and defense represent a strategic development axis that we will actively continue to develop in collaboration with our partners,” she added.
Ola Källenius did not provide specific details in his interview with the Wall Street Journal about the types of products Mercedes-Benz could manufacture. He predicted that these defense-related activities would only represent a “minor part of the business” of Mercedes-Benz compared to the production of cars and vans, but they could be “a growing niche that could also contribute to the group’s commercial results.”
