Mercedes-Benz CEO Signals Openness to Defence Sector Work

Mercedes-Benz CEO Ola Källenius said the company is open to future work in the defence sector. He cited Europe's need to strengthen defence capabilities in response to a more unpredictable world. Källenius did not outline any specific projects or timelines. The statement comes as Germany's automotive sector faces pressure from high costs, weak demand, and competition from China.

3 billion. Revenue declined by about nine percent during the same period. All major German carmakers except BMW have announced domestic job cuts in recent months. The sector generated more than €540 billion in revenue in 2024.

Blume said the company will decide later this year whether to produce military transport vehicles at its Osnabrück plant. Blume stated Volkswagen would not manufacture weapons or tanks. Rheinmetall is examining whether sites in Neuss and Berlin could be converted for defence production.

The company is also considering taking over entire factories from carmakers under pressure. Rheinmetall CEO Armin Papperger said existing automotive plants are only partly suitable for defence work and conversions would be expensive. He added that such options should be evaluated before building new facilities.

Hensoldt has been recruiting skilled workers from suppliers including Continental AG and Bosch. Germany's five largest defence companies generated combined revenues of just under €30 billion in 2023.