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From taxi to troop transporter? Why Mercedes-Benz seeks proximity to the defense industry.
But while the automotive industry grapples with sluggish sales, the costly transformation to electric mobility, and rising competitive pressure from China, a business field is coming more into focus at Mercedes-Benz and Daimler Truck that had long been on the fringe of public interest: the defence industry.
The development is not surprising. The Russian attack on Ukraine has triggered a security-policy turning point in Europe. States are increasing their defence spending, armies are modernising their fleets of vehicles, and industry is responding to rising demand.
Daimler Truck now states this in surprisingly open terms. In early 2025, the company announced that it would expand its offering in the defence sector. A broader product range, additional partnerships, and the expansion of sales and service are intended to drive growth in the military business.
International Major Orders
They are no longer just about specialized vehicles. In June Daimler Truck received a major contract from the Bundeswehr or its mobility service provider BwFuhrparkService. Several hundred militarily equipped Mercedes-Benz Arocs with all-wheel drive will be delivered. The vehicles are intended to strengthen the Bundeswehr's transport capacity and are to be delivered by 2026.
Parallel, new collaborations are emerging. At the ILA Berlin Air Show in Berlin, Mercedes-Benz announced a collaboration with the drone start-up Tytan Technologies. The aim is the development of mobile systems for drone defense. Mercedes supplies the vehicle platforms on which the technology is to be installed. Internationally, the business is also growing. Together with the French military vehicle manufacturer Arquus, Daimler Truck is participating in a program to renew French military logistics. The plan is to deliver around 7,000 military transport trucks over a period of ten years.
From a corporate perspective, this development is understandable. Military procurement programs often run for many years. They offer a degree of predictability that the civilian vehicle market currently hardly knows. While private customers postpone their purchasing decisions and companies hold back on investments, states award multi-billion-euro contracts with long durations.
Development raises moral questions
Mercedes-Benz has for decades lived on a brand image closely linked to civilian mobility. Taxi fleets, emergency services, tradespeople and families have traditionally been part of the customer base. The more the brand is in the future associated with military applications, the greater the challenge to unite these different identities under one roof.
In addition, there is a societal debate that has only just begun. For a long time, parts of the economy regarded the defense industry as a problematic field of business. In the meantime, this perception is noticeably changing. Security-policy arguments are overtaking earlier reservations in many places. Yet the question remains: Where does the line run between necessary defensive capability and an economic dependence on military demand?
Military technology overtakes the taxi market
For the taxi industry, this development may at first glance seem far removed. In fact, it exemplifies how strongly the automotive sector is currently changing. Manufacturers are seeking new fields of business, new markets and new sources of revenue. The classic role as a producer of civilian vehicles apparently no longer suffices for many companies.
Of course, the Stuttgart-based carmaker has been a supplier to the Bundeswehr for decades with the G-Class (the Bundeswehr's "Wolf") and trucks. Now Mercedes-Benz is pushing the defense business noticeably and is pursuing a course that may economically make sense. But whether it will also fit the brand's self-image in the long term remains another question.
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