French-German tank revolution: Next-gen MGCS project gains momentum

Armoured vehicle makers KNDS and Rheinmetall, along with defense-electronics company Thales, have signed a shareholder agreement to create a joint venture aimed at developing a future main battle tank for Germany and France.

This development brings the project one step closer to actual work after years of delays due to negotiations between the partners.

Reports in US media reveal that the new company, based in Cologne, Germany, will have equal ownership between KNDS Deutschland, KNDS France, Rheinmetall, and Thales, each holding a 25% stake, per Caliber.Az.

The agreement, signed in Paris on January 23, is a vital step in forming the joint venture, which was first announced nearly nine months ago.

Work on the project will be split 50/50 between France and Germany. Emmanuel Chiva, head of the French armament agency DGA, previously stated that finalizing the balance among the partners had been “a little complicated.”

The new Main Ground Combat System (MGCS) is designed to replace the Leopard 2 and Leclerc tanks in service with the German and French armed forces, respectively. However, with the program's timeline at risk of delay, KNDS and Rheinmetall have proposed alternative tank concepts and upgrades to address the ageing fleets.

The companies aim for the MGCS to replace the Leopard 2 and Leclerc tanks by 2040, though France plans to replace the Leclerc by 2035.

KNDS anticipates a market for hundreds of main battle tanks over the next 10 to 15 years, well before the MGCS enters service. The company presented upgrades to the Leopard 2 and the Leclerc Evolution at the Eurosatory defence show in Paris last year. Rheinmetall also displayed a version of its KF51 tank with an uncrewed turret, noting the MGCS project was taking longer than initially expected.

As threats evolve on the battlefield, especially with the rise of drone attacks on tanks, Rheinmetall introduced an upgraded Challenger battle tank in September, featuring improved armour and a 120mm smoothbore cannon to increase survivability.

KNDS Deutschland continues to produce the Leopard 2, with orders from several countries, including Sweden, Lithuania, Czechia, and the Netherlands. KNDS France, however, produced its last Leclerc in 2008 but has been upgrading existing tanks for the French Army.

Rheinmetall has expanded its production capacity, opening a new tank factory in Hungary in 2023, with plans to produce tanks in Italy in collaboration with Leonardo. The company has also proposed building a plant in Ukraine to produce up to 400 KF51 tanks annually.

The new MGCS project company will serve as the prime contractor for the next phase of the tank program after finalizing a contract with the German federal office for Bundeswehr equipment. The company will work to consolidate the concept and technological pillars of the system.

The MGCS program is divided into eight pillars, with the project company subcontracting various companies for different areas. The program includes a heavy tank as well as unmanned armored vehicles, incorporating innovative weapons systems.

Although Italy and the Netherlands have shown interest, the MGCS program remains a French-German initiative for now. KNDS has indicated that the inclusion of other countries will only occur once the program is open to international participants.

By Tamilla Hasanova