Decisions Rheinmetall gets grenade competitor and VW looks to armaments

Source: dpa 1 min Reading Time

Rheinmetall is the market leader for artillery ammunition. But now there has been a cartel office decision that the Düsseldorf-based company is unlikely to like. At the same time, there is vague news from Volkswagen.

155-millimeter shells for modern artillery are actually Rheinmetall's specialty. However, the Cartel Office has now waved through a Joint venture that will give the Düsseldorf-based company competition in the production of these products. And VW is also thinking about armaments ...(Source:  Rheinmetall)
155-millimeter shells for modern artillery are actually Rheinmetall's specialty. However, the Cartel Office has now waved through a Joint venture that will give the Düsseldorf-based company competition in the production of these products. And VW is also thinking about armaments ...
(Source: Rheinmetall)

When it comes to the sale of artillery ammunition, the armaments group Rheinmetall now has to deal with its major competitor Nammo from Norway. The Federal Cartel Office recently approved a joint project between Rheinmetall's major Norwegian competitor and the German missile manufacturer Diehl Defence. The project involves the production of the widely used 155-millimeter projectiles. Nammo also has no production facilities in Germany, but this is now changing thanks to the joint venture with Diehl. And approval has now been granted for this joint venture. Both have thus been awarded the contract for a Bundeswehr tender. However, the order is so large that it can only be covered by the joint venture. Diehl Defence has previously produced artillery shells, but only in small quantities. This will now change.

Volkswagen rumors intensify

After VW presented two military vehicles as prototypes in February, which were built at the Osnabrück plant in a very short time, the Wolfsburg-based company now wants to decide on the future of the Osnabrück plant by the end of 2026. With regard to the plant, the company is still working on a viable path, but is still open at the moment. Talks have also been held with defence companies. VW Group CEO Oliver Blume said this at the presentation of the financial statements in Wolfsburg. A decision will then be made in the course of the year on how to proceed there. However, Rheinmetall has long been considered a possible interested party for the site. According to news from Automobilwoche, Rheinmetall wants to manufacture bulletproof cabs for military trucks there. Around 2,300 people work at the plant.

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