Mercedes plans to launch into arms production

The German company Mercedes-Benz has shown itself open to the idea of ​​launching into arms production. Such an initiative should, however, be economically justified, declared Friday (15.05.26) the group’s CEO, Ola Källenius, to the American newspaper Wall Street Journal.

“The world has become more unpredictable, and I think it is quite clear that Europe must strengthen its defense capabilities”declared the manager of the German manufacturer. “If we can play a positive role in this, we are prepared to do so.”

Arms sales would certainly only represent a small share compared to automobile production, but they could constitute a growing niche which would contribute to the company’s results, added Ola Källenius. Mercedes-Benz has not yet made an official statement.

Increase in military spending

Faced with increasing military spending in Europe, the arms industry increasingly appears as a potential growth sector for German automobile manufacturers. At the end of April, the largest European car manufacturer, Volkswagen, negotiated with the Israeli arms group and manufacturer of the Iron Dome system, Rafael Advanced Systems, the reconversion of its Osnabrück factory for the production of anti-missile defense systems. VW, however, denied any plans to build weapons. At the start of the week, the Rheinmetall arms group also announced a partnership with Deutsche Telekom for the development of an anti-drone shield.