Mercedes-Benz’s CEO, Ola Källenius, has indicated that the automotive giant is contemplating entering the defense production sector. According to “The Wall Street Journal” Källenius stressed that any such move would have to be “economically sensible”.
The CEO stated that the world has become “more unpredictable” necessitating that Europe strengthen its defense capabilities. While the company confirmed its readiness to play a “positive role” in this sector, he cautioned that the expected revenue from arms manufacturing would remain minor compared to the current car production output, though it could represent a growing and profitable niche.
This move follows similar announcements from other industry players. Volkswagen, for example, has stated plans to decide this year whether to manufacture military transport vehicles for the armaments sector at its Osnabrück plant.
The broader context highlights significant pressures on the German auto industry due to increased international competition and recent trade conflicts. In contrast, the defense industry has been performing strongly, recently reporting record revenues, according to figures provided by the Sipri Institute for Peace Research.