So far everything was going well at MBDA… Missile sales contracts have been piling up one after the other since the war in Ukraine and are swelling an order book propelled in particular by a mega-order of six billion euros signed in 2024 by MBDA in Poland. As a result, the missileer has a portfolio that will reach stratospheric altitudes by the end of 2024, or around 35 billion euros, according to our information. But for nine months, the internal situation has gradually and very clearly become tense and tense with a profound reorganization project (of which La Tribune has obtained a copy) wanted by the CEO of MBDA, Eric Béranger with the green light from its board of directors. Questioned by La Tribune, the missileer did not wish to make comments.
A very irritating issue for Paris and London
If the objective of making the group more efficient in order to sell its colossal order book appears legitimate, this reorganization also affects the governance of the missile maker and impacts the influence of the founding countries of MBDA (France, Great Britain and Italy). ). And there lies the drama. Because this subject angers both internally and outside the group, France and Great Britain. This European company (37.5% owned by Airbus, 37.5% BAE Systems and 25% Leonardo) must effectively deal in its industrial and managerial management with the sovereign interests of three nations which created this company in 2001 and for which the missile sector is extremely sensitive and sovereign.
Because this industry is often very decisive in obtaining export contracts for military platforms (aircraft, ships and armored vehicles) developed domestically. And for France, MBDA goes well beyond these commercial considerations. The company represents an existential challenge for French defense, the missile maker being part of the deterrence ecosystem with the production of nuclear missiles. airborne ASMP-A, and then later, ASN4G. The reorganization of MBDA mobilizes a lot of the Ministry of the Armed Forces, which is very vigilant on this issue. Questioned by the Tribune, the ministry did not wish to comment.
Recently, relations between Eric Béranger and two founding states of MBDA (France and Great Britain) have been lively, even very lively. The ministry, via the DGA (Directorate General of Armaments), issued “an unfavorable opinion” to this project, according to a letter from the General Delegate for Armaments (DGA) sent on November 22 to Eric Béranger and which La Tribune obtained. For the DGA, the reorganization is neither in the right timing nor in the right tempo given the challenge by MBDA to deliver on time the missiles purchased by the countries to replenish their emergency stocks.
“Launching a major reorganization today would, in my view, lead to a period of opposite instability” with the objective of accelerating deliveries, explains Emmanuel Chiva to Eric Béranger in his letter. Questioned by La Tribune, the DGA also did not wish to make any comments. Furthermore, the ministry is unable to appreciate today how the reorganization, which was presented by Eric Béranger, will make production more efficient to allow an increase in production capacity.
Reduced French influence
“In addition, the proposed reorganization seems to me to weaken the presence of France in the governing body of MBDA, the current balance being justified on the one hand by the investments made by France since the creation of MBDA and on the other hand by the weight that the French entity represents in MBDA’s turnover and in its workforce”also writes the General Delegate for Armaments. And this is the heart of the discontents of France but also of Great Britain. In the reorganization project presented to the Ministry of the Armed Forces, France’s influence is weakened compared to what it is today while that of Italy is growing in power.
If the reorganization were implemented as it was presented to the three countries, Leonardo would place two Italians in key positions, likely to guide MBDA’s present and future strategy and investments: the operations department and that of the strategy and growth. Unacceptable for Paris and London. France would thus be marginalized with only one department, that of programs (instead of two currently: operations and programs). This reorganization would also reduce the role of Stéphane Reb, one of the strong men within MBDA and whom France is particularly keen to manage the airborne deterrent programs, according to our information. Moreover, the already cool relations between Eric Béranger and the current director of MBDA programs and general manager MBDA France, have cooled very clearly in recent months. Great Britain would have three departments (finance, sales and human resources).
A suspended calendar
For all these reasons, Emmanuel Chiva asked Eric Béranger to “suspend” this reorganization and “to concentrate its efforts on the full achievement of the industrial objectives assigned to you, particularly in our war economy context”. Pushed by Airbus and Leonardo, in particular, the boss of MBDA seemed to want to move very quickly despite very negative messages from Paris and London, already very irritated at having been warned at the last moment by MBDA and that once the green light of the board of directors acquired. For France, there is therefore both a problem of form (time and calendar) and substance (calling into question the balance between nations and loss of sovereignty).
Today, it seems, according to consistent sources, that for Eric Béranger, it is urgent to wait and launch a consultation with France and Great Britain, in particular, so that MBDA takes their opinion into account and their requirements. Moreover, the working groups within the company, which already has costs on this issue, have been stopped, according to our information. And the reorganization project is today presented as a discussion document and no longer as a project about to be launched. According to our information, MBDA plans at best to launch this reorganization not before the end of the first half of the year, if it is actually launched.
What is certain is that MBDA needs to reform itself to be more efficient in industrial production, change dimension and therefore support this new world which has emerged since the war in Ukraine. It is up to Eric Béranger to find a balance between the will of his shareholders and the demands of his national customers, who will have to continue to buy missiles and launch programs to influence the group. is an inherently unstable crest line for Eric Béranger.
Related News :