Mercedes-Benz CEO tells WSJ carmaker willing to enter defense production
Mercedes-Benz Considers Entry into Defense Sector
May 15 (Reuters) - Mercedes-Benz CEO Ola Kallenius told the Wall Street Journal on Friday that the German automaker was willing to move into defense production as long as it made "business sense".
CEO Ola Kallenius' Perspective
• "The world has become a more unpredictable place, and I think it is absolutely clear that Europe needs to increase its defense profile," Kallenius told the publication. "Should we be able to play a positive role in that, we would be willing to do so."
Potential Impact on Mercedes-Benz Business
• Kallenius told WSJ that defense-related operations would be "a minor share" of its business compared with auto production, but added that it could be "a growing niche" that could contribute to business results. "So, we'll see."
Company Response and Industry Context
• Mercedes-Benz did not immediately respond to Reuters' request for comment outside business hours.
• German automakers have been exploring the defense industry as a potential growth avenue as Europe ramps up military spending.
Developments Among German Automakers
• In March, the Financial Times reported that Volkswagen was in talks with Israel's Rafael to convert its Osnabrueck plant from car production to missile-defense manufacturing, though the German automaker denied plans to make weapons.
• Earlier this week, German defense group Rheinmetall announced a partnership with Deutsche Telekom to develop a defense shield against drones.
Reporting Credits
(Reporting by Disha Mishra in Bengaluru; Editing by Diti Pujara)
