Mercedes-Benz hints at defence future as Europe boosts military industry
May 17, 2026
Mercedes-Benz has signalled it could support Europe’s growing defence sector as pressure increases on Germany’s struggling automotive industry and military companies seek new industrial partnerships.
Mercedes-Benz CEO Ola Källenius said the company would be open to playing a role in strengthening Europe’s defence capabilities, although he stressed that any defence-related activity would remain secondary to its core automotive business, News.Az reports, citing Euro News.
Speaking in an interview with The Wall Street Journal, Källenius said the world had become more unpredictable and that Europe clearly needs to expand its defence capacity. However, he did not reveal any specific projects or plans involving military production.
Mercedes-Benz joins a growing number of German automotive companies considering possible links to the defence sector. Volkswagen is also reportedly exploring opportunities connected to military transport vehicles at its Osnabrück plant, although the company said it would not manufacture weapons or tanks.
At the same time, defence companies are increasingly targeting Germany’s automotive factories, workforce and engineering expertise as the car industry faces economic difficulties.
Rheinmetall said it is examining whether some automotive supplier facilities in Neuss and Berlin could be converted for defence manufacturing. The company is also considering taking over factories from struggling carmakers, including Volkswagen’s Osnabrück site.
Defence and aerospace company Hensoldt has meanwhile been recruiting skilled workers from automotive suppliers such as Continental AG and Bosch as demand for military production continues to rise across Europe.
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