Germany to acquire armoured vehicles worth almost $7 billion

The Schakal vehicle procurement will be executed through the European defence procurement agency OCCAR and assigned to Artec GmbH, a joint venture between KNDS and Rheinmetall, and already responsible for the Boxer armoured vehicle program. (Picture source: German MoD)

The German government will order 424 new wheeled armoured vehicles for almost 7 billion euros ($8.11 billion), according to finance ministry documents seen by Reuters on Monday.

The lower house of parliament’s budget committee is set to approve the arms deal for the country’s army in the next few days.

German government is preparing to approve a procurement worth almost €7 billion for 424 new wheeled armoured vehicles. The package covers 274 scout vehicles from General Dynamics and 150 Schakal infantry fighting vehicles built by Artec GmbH. Parliamentary approval is expected within days, enabling production to start ahead of 2027 deliveries.

The largest part of the Bundeswehr deal is a framework agreement with the defence group General Dynamics (GD.N) for the development and procurement of 274 scout vehicles worth around 3.5 billion euros, with the first deliveries planned for 2028.

The second project entails the procurement of 150 “Schakal” wheeled armoured infantry fighting vehicles for around 3.4 billion euros.

Germany will award the Schakal contract via the European Defence Procurement Agency OCCAR to Artec GmbH, a joint venture between KNDS and Rheinmetall. Delivery of the fighting vehicles is scheduled to take place between 2027 and 2031.

Purchasing an additional 82 scout tanks from General Dynamics could increase the first order’s volume to 356 vehicles, valued at up to 4.6 billion euros.

The purchase of Schakal fighting vehicles could also be expanded at a later stage, with an option for up to 200 additional vehicles.

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