Mercedes-Benz chief Ola Kellenius said the group may start military production amid rising defence spending in Europe.
“The world has become more unpredictable and Europe needs to increase its defence capabilities. If we have the opportunity to play a positive role in this, we will be ready to do so,” Kellenius told The Wall Street Journal in an interview published on 15 May.
He said defence remains a small part of the company’s business but could be a “growing niche”. Mercedes already produces heavy trucks used for military purposes, as well as military versions of G-Class SUVs.
Earlier, the head of Volkswagen Oliver Blum also stated about the readiness to produce military vehicles. According to media reports, Volkswagen is in talks with the Israeli company Rafael Advanced Defence Systems to produce components of the system about the “Iron Dome” at the plant in Osnabrück.
The Financial Times also reports that NATO Secretary General Mark Rutte is preparing a meeting with major European defence companies to discuss boosting arms production and reducing dependence on Chinese and Taiwanese components.
Mercedes, like other Western manufacturers, is facing falling profits and increasing competition from Chinese carmakers. The group’s profits have almost halved in 2025.