Published on 6/15/2026
European car companies are increasingly turning to the defense sector in search of new sources of growth. In light of the rise in military spending on the continent and the decline in demand in some traditional markets, the German “Daimler Truck” and the French “Renault” announced new plans and projects in this field.
The German commercial vehicle company “Daimler Truck” said that it will combine its global defense activities under a new brand called “Daimler Truck Defense”, with its business directed towards achieving global growth in the coming years.
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The company said that it sees the defense sector as a “clear engine for growth,” targeting revenues of one billion euros (about 1.16 billion dollars) by 2028.
The group’s total revenues amounted to about 49.5 billion euros (about 57.5 billion dollars) during 2025.
Daimler Truck Defense President Dennis Kentzelmann said in statements to the German News Agency, “We had and still have a very good position in light of the high demand. We rely on products that have already proven their efficiency.”
He added that the defense sector’s revenues during the past year amounted to hundreds of millions of euros, noting that military vehicles still represent a limited percentage of total sales compared to traditional trucks and buses.
As part of its expansion plans, the company intends to increase its capabilities in the areas of development, production, sales and services, while strengthening the workforce at its site in Wirt am Rhein with more than 100 new employees, while about 1,000 people are currently working in its defense activities.
Kentzelman explained that the company relies on the technical platforms used in the group’s civilian vehicles, in addition to cooperation with partner companies, noting that models such as the Unimog and Arocs have been used for years in non-military applications.
This step comes at a time when Daimler Truck is facing increasing pressure, after its net profits last year declined by 34% to two billion euros (about 2.16 billion dollars), affected by US customs duties and weak demand in North America, while its profits during the first quarter of this year decreased by 80%.
Towards the world of weapons
In France, Renault announced that it will develop a new military vehicle in partnership with Thales, a company specializing in defense technologies, as part of its efforts to contribute to European rearmament efforts.
The company said the project will leverage Renault’s industrial expertise and Thales’ secure communications technologies to develop a multi-mission vehicle that can be produced quickly and affordably.
The European trend towards strengthening defense capabilities comes in the wake of the Russian-Ukrainian war and shifts in American foreign policy during the term of President Donald Trump, which prompted European governments to increase military spending and accelerate arms programs.
A prototype of the new vehicle, called “4 Troop”, is scheduled to be displayed during the Eurosatory defense exhibition, which began near Paris on Monday.
Reuters previously reported that Renault had begun producing drones in cooperation with the French Ministry of Defense, with the possibility of manufacturing 600 units per month in less than a year, benefiting from its industrial experience without compromising its core investments in the automotive sector.
The Financial Times reported that the German company Volkswagen was considering converting the Osnabrück factory’s production of cars into components for missile defense systems.
Reuters also quoted the CEO of Mercedes-Benz, Ola Kallenius, as saying last May that the company was ready to enter the field of defense production, provided that it was “commercially viable.”
