Mercedes Weighs Defence Production as KNDS Eyes Plant

CEO signals openness – KNDS expresses interest German Car Maker Mercedes-Benz weighs Entry into the Defence Sector

2026-05-16 From Veronika Maucher 1 min Reading Time

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Following Volkswagen, German carmaker Mercedes-Benz is also considering a move into defence production. Chief executive Ola Källenius told the The Wall Street Journal that the world had become more unpredictable. He therefore believed Europe needed to expand its “defence profile”. “If we can play a positive role in that, we are prepared to do so.”

Mercedes-Benz plant Ludwigsfelde: KNDS weighs takeover for scalable production.(Picture: Wiki Commons, (BY-SA 4.0)) — Mercedes-Benz plant Ludwigsfelde: KNDS weighs takeover for scalable production.
(Picture: Wiki Commons, (BY-SA 4.0))

Earlier, German news magazine Der Spiegel reported that Franco-German tank manufacturer KNDS was in talks with Mercedes-Benz about taking over its plant in Ludwigsfelde, south of Berlin. Last year, KNDS had already acquired the Alstom factory in Görlitz, which had been threatened with closure.

Report: KNDS interested in Mercedes Ludwigsfelde plant

The background to the move is a potential order by the Bundeswehr for up to 3,000 Boxer wheeled armoured vehicles, produced in various versions by KNDS and Rheinmetall. The Munich site alone would not provide sufficient capacity for such production volumes. Mercedes-Benz currently manufactures chassis for the Sprinter van in Ludwigsfelde. However, production of the model is expected to move to Poland from 2030 onwards. Mercedes is therefore reportedly discussing with KNDS the possible transfer of the plant and part of its workforce of around 2,000 employees. One option under consideration would be for KNDS initially to lease part of the facility before a full takeover, allowing military vehicles from KNDS and Mercedes vans to be produced in parallel at the site.

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