Headlines
Leonardo CEO denies talks with automakers on military production
Published by Global Banking and Finance Review
Posted on March 6, 2025
2 min readLast updated: January 25, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on March 6, 2025
2 min readLast updated: January 25, 2026
Leonardo's CEO denies any talks with automakers for military production, despite EU's defense spending plans. Car industry may help, but conversion is tough.
ROME (Reuters) - Italy's Leonardo is not talking to automotive producers, such as Stellantis, about possible partnerships to produce military equipment, the state-controlled defence company's chief executive said on Thursday.
As Europe sets out to raise military spending - with EU leaders meeting to discuss proposals to mobilise up to 800 billion euros ($843 billion) for rearmament - unused car plants across the bloc are seen as a quick way of ramping up military production while reviving a suffering industry.
In Germany, defence companies are seeking more capacity, while carmakers, for decades the country's economic powerhouse, are cutting jobs and shutting plants amid slowing demand and a faltering electric vehicle transition.
"We do not have any ongoing discussions with carmakers, too early, it would be impossible," Leonardo CEO said at a press conference in Rome.
Cingolani said the car industry could make a limited contribution to efforts to boost defence production.
"In a certain way the automotive industry could be used for some components... but (a production conversion) from cars to tanks would be very hard," Cingolani said.
The Leonardo CEO said that defence companies would have to make choices on ways to increase their production in the face of a spike in defence spending and the consequent rise in orders.
He repeated that alliances would be the way forward to produce more without having to, necessarily, invest in new production facilities.
He conceded that the automotive industry in Europe needed help after suffering from "decisions that were not technologically neutral, but going from cars to tanks is not the solution".
(Reporting by Giulia Segreti, editing by Gavin Jones and Keith Weir)
No, Leonardo's CEO stated that they are not in discussions with automotive producers about partnerships for military equipment.
Europe is looking to increase military spending, with EU leaders discussing proposals to mobilize up to 800 billion euros for rearmament.
The automotive industry could make a limited contribution to defence production, but transitioning from cars to military vehicles would be very challenging.
The CEO mentioned that forming alliances would be essential for increasing production without necessarily investing in new facilities.
The automotive industry in Europe has been struggling, with job cuts and plant closures due to slowing demand and a faltering electric vehicle market.
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