Mercedes is prepared on one condition to enter the military production sector economy

Mercedes-Benz CEO Ola Källenius said that the German car giant is ready to enter the field of defense production, provided that it is “commercially viable.”

“The world has become a more volatile place, and I think it is quite clear that Europe needs to strengthen its presence in the field of defense,” Kallenius, a German-Swedish man, added in an interview with the American newspaper “The Wall Street Journal.” “If we can play a positive role in that, we will be willing to do so.”

In his interview with the newspaper, Kallenius did not detail the type of products that Mercedes-Benz might manufacture, but he expected that work related to military production would represent “only a small part of the company’s operations” compared to the manufacture of civilian cars and trucks.

But he noted that defense could be a “fast-growing niche area that may also contribute to the group’s financial results.”

Reuters reported that Mercedes-Benz is considering entering the defense sector, given its expected growth as a result of increased military spending in Europe.

Pressure on companies

Kallenius’s statements come as Germany strengthens its military capabilities since the start of the war between Russia and Ukraine in February 2022.

The German defense industry has kept pace with this trend, as is evident in the rise of the German company Rheinmetall in recent years, with the group’s recent expansion into the fields of marine industries and military drones.

On the other hand, German car companies, such as Mercedes-Benz and Volkswagen, are facing great pressure, as they find themselves stuck between the customs duties recently imposed by US President Donald Trump on European cars and trucks on the one hand, and fierce Chinese competition on the other hand, especially with Beijing’s ability to offer cars at a lower cost.

“strategic axis”

Agence France-Presse asked a Mercedes-Benz spokesman to comment on Kallenius’s interview, and he said that the company “has been supplying several specialized companies with vehicle bodies for years, which in turn prepares and markets them under its own responsibility, and under its own brand for military uses.”

The spokesman added, “Our activities in the security and defense sector represent a strategic axis of development that we will continue to work on actively, in cooperation with our partners.”

In the same context, Volkswagen CEO Oliver Blum said in late March that he was in contact with defense companies, especially those working in the field of missile defense, with the aim of converting a German factory into producing military transport equipment.

According to the British newspaper “Financial Times”, talks are continuing between Volkswagen and the Israeli company “Rafael” for advanced defense systems, which were designed for the Israeli Iron Dome system.

However, Volkswagen denied, according to what Reuters reported, the existence of any plans to manufacture weapons.