The attraction of the defense sector for automotive players is confirmed against a backdrop of rearmament and declining vehicle sales. German automaker Mercedes Benz could also enter this field, according to its CEO.
The offensive by automotive players into the defense sector continues. The head of German automaker Mercedes-Benz, Ola Källenius, did not rule out venturing into the armaments sector, as he told the Wall Street Journal in an article published on Friday, May 15.
“The world has become more unpredictable, and I think it is clear that Europe needs to strengthen its defense profile,” explained Ola Källenius, the German-Swedish president of the board of Mercedes-Benz. “If we can play a positive role in this area, we are ready to do so.”
Volkswagen is also involved in this context. 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 recent rise of Rheinmetall. On the other hand, German automakers like Mercedes-Benz and Volkswagen are facing a major crisis, caught between tariffs and tough Chinese competition.
In late March, the CEO of another German automotive giant, Volkswagen, Oliver Blume, had said to be “in contact” with arms companies, particularly those involved in missile defense, to convert one of its German factories into the production of military transport equipment. According to the Financial Times, discussions are underway with Rafael Advanced Defence Systems, which designed the Israeli Iron Dome.
Defense would remain “a minor part” of the business. Responding to questions about Ola Källenius’s interview, a spokesperson for Mercedes Benz emphasized that the group “has been providing chassis to specialized companies for many years, which equip and market them under their own responsibility and brand for military applications.” “Our activities in the security and defense field constitute a strategic development axis that we will continue to actively develop, in collaboration with our partners.”
