AA / Istanbul

The head of Mercedes-Benz, Ola Källenius, hinted that the German automaker could venture into the defense sector, amidst European rearmament due to geopolitical tensions. In an interview with the Wall Street Journal, Källenius stated: “The world has become more unpredictable, and I think it is quite clear that Europe needs to strengthen its defense profile,” according to the French media outlet BFMTV.

Mercedes-Benz did not specify what types of military products could be developed, but the CEO emphasized that these activities would remain “a small segment compared to car and van manufacturing,” while potentially contributing to the group’s business results.

According to the Financial Times, Volkswagen is exploring partnerships with missile defense companies like Rafael Advanced Defense Systems to convert some of its factories into military production sites. Meanwhile, Mercedes-Benz has been supplying chassis to specialized companies for military applications under their own brand for several years, as reported by the same outlet.

Additionally, Israeli defense company Rafael is reportedly in talks to take over Volkswagen’s Osnabrück plant, as the automaker plans to cease vehicle production there after 2027, according to a German lawmaker.

Bastian Ernst, a CDU conservative and former defense industry player, confirmed these discussions to the German news agency DPA.

“There are talks between Rafael and Volkswagen,” he said, indicating that the site could be used to manufacture components related to the Iron Dome air defense system, including heavy trucks, launchers, and other elements.