German company Mercedes-Benz has shown openness to the idea of venturing into arms production. However, such an initiative should be economically justified, said the group’s CEO, Ola Källenius, in an interview with the American Wall Street Journal on Friday (15.05.26).
“The world has become more unpredictable, and I think it is clear that Europe must strengthen its defense capabilities,” said the CEO of the German automaker. “If we can play a positive role in this area, we are ready to do so.”
While arms sales may only account for a small portion compared to automobile production, they could represent a growing niche that would contribute to the company’s profits, added Ola Källenius. Mercedes-Benz has not made an official statement at this time.
Increase in Military Spending
With the increase in military spending in Europe, the arms industry is increasingly seen as a potential growth sector for German car manufacturers. In late April, the largest European car manufacturer, Volkswagen, was in negotiations with Israeli arms group and Iron Dome system manufacturer, Rafael Advanced Systems, for the conversion of its Osnabrück factory to produce missile defense systems. However, VW denied any plans to build weapons. Earlier this week, the armament group Rheinmetall announced a partnership with Deutsche Telekom for the development of an anti-drone shield.
