Germany plans to order 50 Puma infantry fighting vehicles from manufacturers Rheinmetall AG and Krauss-Maffei Wegmann GmbH for €1.5 billion ($1.7 billion) to restock the country’s armed forces, according to people familiar with the matter.
(Bloomberg) — Germany plans to order 50 Puma infantry fighting vehicles from manufacturers Rheinmetall AG and Krauss-Maffei Wegmann GmbH for €1.5 billion ($1.7 billion) to restock the country’s armed forces, according to people familiar with the matter.
Payments will be made in tranches until the end of 2026, and the deal is set to be approved by the German budget committee on Wednesday, said the people, who asked not to be identified because the discussions are private.
The defense ministry and KMW declined to comment. Rheinmetall didn’t immediately respond to requests for comment.
The vehicles will be purchased with money in a €100 billion pot set up last year in the aftermath of Russia’s invasion of Ukraine to bolster Germany’s aging military equipment. The special fund is outside the government’s regular budget.
The deal indicates that a controversy over the Puma has been resolved. Former Defense Minister Christine Lambrecht complained late last year about technical failures, saying that “until the vehicle proves to be stable, there will be no second batch.”
Boris Pistorius, who succeeded Lambrecht in January after she resigned following a series of gaffes, faces the task of renewing the German military after years of underinvestment. But it’s been a slow process.
Just €800 million of the €100 billion in the special defense fund had been spent by the end of April, according to the latest monthly report by the German finance ministry.
–With assistance from Alexander Pearson.
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