German Rheinmetall and Italian Leonardo create a competitor to the Franco-German project

The barrel of a Puma combat vehicle on a production line at the Rheinmetall factory in Unterluess, Germany, February 12, 2024. FABIAN BIMMER / AFP

A new European heavyweight in land weapons has just seen the light of day, and it is in head-to-head competition with the Franco-German tank manufacturer KNDS. Tuesday October 15, two giants of the defense industry, the Italian Leonardo and the German Rheinmetall, announced that they were joining forces to create a joint venture, Leonardo Rheinmetall Military Vehicles (LRMV), with the aim of manufacturing tanks and infantry fighting vehicles. The new entity, based in Italy, will initially produce for the Italian armed forces, but aims to deliver to other countries around the world in the future. The first order placed by Rome is considerable: 23 billion euros, for the eventual delivery of a thousand armored vehicles.

The agreement provides for the construction of two vehicles, one based on the Panther KF51 assault tank, the other based on the Lynx infantry armored vehicle, both developed by Rheinmetall. But these will not be simple copies: Leonardo must bring to the new equipment its cutting-edge technological know-how in electronic systems, involving a spatial dimension and the use of artificial intelligence to analyze the battlefield.

Nearly 60% of production must take place in Italy. The agreement provides for manufacturing in record time: the first tanks could be delivered within two to three years. The Italian-German rapprochement was itself concluded in the space of a few weeks, after the breakdown, in June, of negotiations between Leonardo and KNDS.

Agility in an emergency context

By showcasing, on Tuesday in Rome, their speed, their good understanding and their common ambition, Roberto Cingolani, CEO of Leonardo, and Armin Papperger, boss of Rheinmetall, sent a strong sign in a Europe which is seeking to rearm itself. “This is an important step towards the creation of a European defense system based on specialized shared platforms. Rheinmetall and Leonardo aim to develop cutting-edge technologies capable of competing internationally,” said Mr. Cingolani, who explained that the delays considered too long had played an important role in the failure of the merger with KNDS.

In this new partnership, the German and the Italian not only demonstrate their agility in an emergency context, but also their ability to form players of global size outside of government maneuvers… and by circumventing the axis -Berlin.

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