Mercedes-Benz could enter the arms sector: the boss of the German car manufacturer does not rule out diversification into the defense industry, judging that “the world has become more unpredictable”

In an interview given by the boss of Mercedes-Benz to the Wall Street Journal, Ola Källenius suggested that the German car manufacturer could launch into the defense sector.

The boss of the German car manufacturer Mercedes-Benz has not ruled out launching into the arms sector, in an interview with the American newspaper Wall Street Journal published on the night of Friday to Saturday. “The world has become more unpredictable, and I think it is abundantly clear that Europe needs to strengthen its defense profile,” said Mercedes-Benz CEO Ola Källenius.

“If we are able to play a positive role in this area, we would be ready to do so,” added Ola Källenius.

These comments come in a 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 taking full advantage of this trend, as illustrated by the rise in power in recent years of Rheinmetall. On the other hand, German car manufacturers, like Mercedes-Benz and Volkswagen, are going through a major crisis, stuck between customs duties and tough Chinese competition.

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At the end of March, the boss of another German automobile giant, Volkswagen, Oliver Blume, said he was “in contact” with arms companies, active in particular in anti-missile defense, to reconvert one of his German factories into the production of military transport equipment. According to the Financial Times, discussions are taking place with the company Rafael Advanced Defense Systems, which designed the Israeli Iron Dome.

“A strategic development axis”

Questioned by AFP about the interview with Ola Källenius, a Mercedes Benz spokesperson stressed that the group “has for many years supplied chassis to specialized companies which equip and market them under their own responsibility and under their own brand for military applications”. “Our activities in the field of security and defense constitute a strategic development axis that we will continue to actively develop, in collaboration with our partners,” she added.

Ola Källernius did not give precise details, in his interview with the Wall Street Journal, on the types of products that Mercedes Benz could manufacture. He predicted that this type of defense-related business would be a “minor part of Mercedes Benz’s business” compared to car and van manufacturing, but it could be “a growing niche that could also contribute to the bottom line.” sales” of the group.