Mercedes-Benz CEO Says Carmaker Is Willing to Enter Defense Production

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.”

“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.”

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.”

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.

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.