German carmaker Mercedes-Benz is considering the possibility of entering the defense production market if such a move makes “business sense.” The company’s chief executive, Ola Kallenius, said this in remarks to The Wall Street Journal.
“The world has become a more unpredictable place, and in my view it is obvious that Europe needs to strengthen its defense capabilities. If we can play a positive role in that, we would be ready to do so,” he said.
According to Kallenius, the group could move into the military sector if it is economically viable. He added that any new defense business would account for only an “insignificant share” of the company’s overall portfolio.
As DW notes, in April the FT reported that Volkswagen was holding talks with the Israeli company Rafael Advanced Defense Systems on cooperation. According to the newspaper, the sides plan to convert Volkswagen’s plant in Osnabrueck to produce components for Israel’s Iron Dome missile defense system.
Earlier, Germany’s largest arms manufacturer, Rheinmetall, said it planned to begin producing cruise missiles jointly with a Dutch company. The company also announced a partnership with Deutsche Telekom to develop a protection system against UAVs.
In early May, Germany’s defense minister, responding to Washington’s decision to withdraw troops from Germany, said that European countries needed to take on more responsibility for security. Germany has already “set itself on the right path” in this regard, he added.