Mercedes-Benz Eyes Greater Role in Defense Industry

German carmaker Mercedes-Benz is considering expanding production into the defense sector. Chief executive Ola Källenius told The Wall Street Journal that Europe needs to strengthen its defense capabilities and said the company is prepared to contribute to that effort.

According to Källenius, defense production would initially remain a smaller part of the business compared with passenger cars and commercial vehicles, although he acknowledged it could become a growing segment in the future.

Mercedes-Benz is facing a sharp decline in profits and sales. In 2025, the company’s profit almost halved year on year, mainly due to higher US tariffs and intensifying competition from Chinese manufacturers.

The company is not new to the defense industry. Mercedes-Benz already produces military versions of trucks and modified G-Class SUVs for military use.

(mja)