19:46 18-05-2026
Mercedes-Benz and others pivot to defense amid auto crisis
German automakers like Mercedes-Benz are turning to defense for growth, securing contracts for military trucks and drones amid auto industry struggles.
Germany's automotive industry is increasingly looking to the defense sector for growth. According to Bild, Mercedes-Benz and other German companies view military contracts as a key avenue amid tough conditions in the car industry.
Demand is already evident. France has ordered 7,000 Mercedes-Benz Zetros trucks and partnered with German drone manufacturer Quantum Systems. The Bundeswehr has placed orders with Daimler Trucks for hundreds of Arocs 6x6 trucks for logistics, and Lithuania placed a similar order. Mercedes-Benz holds about a 30% stake in Daimler Trucks.
Military interest isn't limited to heavy trucks. The G-Class, known as the Wolf in the Bundeswehr, the Unimog all-terrain vehicle, the Sprinter van, and large cargo platforms are also in focus. For the automaker, such contracts are appealing because of their scale—potentially thousands of vehicles rather than dozens.
Another area is integrating vehicles with drones. According to Bild, Mercedes is working with Quantum Systems on solutions where trucks can interact with drone swarms. A Mercedes representative said the company's fundamental position is to develop and produce civilian vehicles, but its security and defense activities are a strategic development direction.
Mercedes isn't planning to become a defense contractor. It doesn't produce tanks, artillery, or ammunition at its own plants; military modifications of its vehicles are handled by partners.
The trend extends beyond one brand. KNDS is exploring the use of Mercedes' Ludwigsfelde plant and Volkswagen's Osnabrück site for Boxer armored vehicles. According to Bild, BMW is discussing the application of autonomous driving technology in the military sector.
For Germany's auto industry, this is a pragmatic shift: while the civilian market faces margin pressure, electrification, and slumping demand, defense orders offer factory utilization and long-term contracts. But the image balance will be delicate—premium brands want to profit from this new niche without being perceived as weapons manufacturers.