Article title: Mercedes-Benz CEO hints at move into defense sector amid European rearmament efforts
Date: May 16, 2026
Last updated: May 16, 2026
AA / Istanbul
The head of Mercedes-Benz, Ola Källenius, has suggested that the German automaker could venture into the defense sector in the context of European rearmament efforts amid geopolitical tensions. In an interview with the Wall Street Journal, Källenius stated: “The world has become more unpredictable, and I believe it is quite clear that Europe needs to strengthen its defense profile,” according to the French media outlet BFMTV.
Mercedes-Benz did not specify what types of military products could be developed, but the CEO emphasized that these activities would remain “a minor niche compared to the production of cars and vans” while potentially contributing to the group’s commercial results.
According to the Financial Times, Volkswagen is already exploring partnerships with defense missile specialists like Rafael Advanced Defence Systems to repurpose some of its factories for military production. Meanwhile, Mercedes-Benz has been providing chassis to specialized companies for military applications under their own brand for several years.
Additionally, the Israeli defense company Rafael is reportedly in talks to take over Volkswagen’s Osnabrück plant, as the automaker plans to cease vehicle production there after 2027, as per a German lawmaker.
Bastian Ernst, a conservative elected official from the CDU and former defense industry actor, confirmed these discussions to the German press agency DPA.
“There are talks between Rafael and Volkswagen,” he said, indicating that the site could potentially be used to manufacture components related to the Iron Dome air defense system, including heavy trucks, launchers, and other elements.
