One by one, European automakers are starting to look at the defense sector. The reason is simple: demand for passenger cars is falling, and military orders are growing. Mercedes-Benz has already received large contracts and may transfer one of its factories to tank builders. Volkswagen, in turn, is ready to load the Osnabrück plant with military products instead of convertibles.
As reported by the German publication Bild, Mercedes-Benz will produce 7 thousand Zetros trucks by order of France. These vehicles will become carriers of drones – Paris has also entered into an agreement with the German company Quantum Systems. The trucks themselves will be integrated with swarms of drones, writes Bild.
But this is not the only military product from Daimler Trucks. Several hundred all-wheel drive Arocs with a 6×6 wheel arrangement will be received by the armies of Germany and Lithuania. In addition, the military is interested in the army version of the G-Class, Unimog all-terrain vehicles and Sprinter vans.
Arocs 6×6 military truck
Daimler Trucks
Mercedes-Benz, however, emphasizes that the main direction is civilian cars, although defense and security are called strategic development, Bild clarifies.
The head of Mercedes-Benz, Ola Kallenius, gave an interview to The Wall Street Journal on May 15, 2026, in which he directly stated the concern’s readiness to enter the defense production market in Europe. The main condition is economic feasibility.
Neural networks
Quote from the WSJ: “The world has become a more unpredictable place, and Europe needs to improve its defense capabilities. If we can play a positive role, we will be willing to do so.”
SSG Gary L. Adams / US Department of Defense / public domain
This readiness is explained not only by geopolitics, but also by finances. According to Reuters, Mercedes-Benz’s profit in the first quarter of 2026 fell by 17% year-on-year to 1.9 billion euros before interest and taxes. Global sales decreased by 6%, and in China the drop was even more dramatic: minus 27% in January-March 2026.
BMW, as Bild notes, is also negotiating the introduction of autopilot in the military sphere, but the details are not disclosed.
The German Spiegel sums it up: “The auto industry is in crisis, the defense industry is thriving—there are signs of cooperation.”
The head of the Volkswagen concern, Oliver Blume, did not rule out entering the arms market a year ago. His words are quoted by ZDF: “We carefully study the requirements, especially when it comes to military equipment. This needs to be analyzed.”
Later, concrete plans emerged. The Osnabrück plant, which was supposed to shut down in 2027 after the T-Roc convertible was discontinued, could be sold to the defense concern Rheinmetall. The production of armored cabins for military equipment (Automobilwoche) will be launched there.
Another possible scenario, which the Financial Times wrote about in March 2026, is the production of components for the Israeli Iron Dome air defense system. We are talking about trucks for transporting missiles and generators. Volkswagen was in negotiations with the Israeli defense concern Rafael Advanced Defense Systems.
Press service of the Israel Defense Forces (IDF Spokesperson’s Unit). License: Creative Commons Attribution-ShareAlike 3.0 (CC BY-SA 3.0)
However, an official representative of Volkswagen later told RIA Novosti: “The production of weapons by the Volkswagen concern is excluded, and in the future we will, in principle, not participate in speculation about the future plans of the plant in Osnabrück.”
Despite loud denials, prototypes of military vehicles based on the Volkswagen Amarok pickup truck and the Crafter van were built in secrecy at the same plant in Osnabrück.
In the spring of 2026, samples under the symbols MV.1 and MV.2 were shown to the public at the Enforce Tac exhibition in Nuremberg (dedicated to security and defense).
Defense Network/André Folkert
The military Amarok has a cargo platform on which an ATV is mounted for mobile assault teams. The very ones that quietly penetrate into zones of confident enemy control.
Defense Network/André Folkert
Two independent electrical networks (12 V and 24 V) for special equipment, a console for radios and computers, reinforced underbody protection in the area of the engine, transmission and fuel tank. An ATV was placed on the cargo platform of the exhibition specimen.
The MV.2 modification based on the Crafter is intended as a mobile headquarters, communication point or ambulance for evacuation.
In May 2026, Der Spiegel reported that the Volkswagen plant in Osnabrück and the Mercedes-Benz plant in Ludwigsfeld could sell KNDS to the European tank manufacturer.
Defense Network/André Folkert
The company plans to invest 1 billion euros to expand capacity – its own plant in Munich is overloaded. European countries are actively increasing purchases of tanks and armored vehicles.
The French are not far behind. At the beginning of 2026, Renault openly announced the development and production of combat drones. Bloomberg quotes the company as saying: “At the request of the French Ministry of Defense, the Renault Group has been invited to contribute to the development of the French drone industry.”
Renault will develop the project together with Turgis Gaillard. The decision came shortly after President Emmanuel Macron called for increased military spending to counter global threats.
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