Germany plans $8 billion armoured vehicle procurement for Bundeswehr

Germany is set to acquire 424 new wheeled armoured vehicles at a cost approaching 7 billion euros ($8.11 billion), according to finance ministry documents reviewed by Reuters on October 13.

The lower house of parliament’s budget committee is expected to approve the deal for the Bundeswehr in the coming days.

The largest portion of the acquisition involves a framework agreement with defence group General Dynamics (GD.N) for the development and supply of 274 scout vehicles, valued at roughly 3.5 billion euros. Deliveries of these vehicles are scheduled to begin in 2028.

In addition, Germany plans to procure 150 “Schakal” wheeled armoured infantry fighting vehicles for about 3.4 billion euros. The contract for these vehicles will be awarded through the European defence procurement agency OCCAR to Artec GmbH, a joint venture between KNDS and Rheinmetall (RHMG.DE). Delivery of the Schakal vehicles is expected between 2027 and 2031.

The deal also includes options to expand both orders. Germany could purchase up to 82 additional scout vehicles from General Dynamics, increasing the first order to 356 vehicles and a total cost of up to 4.6 billion euros. Similarly, the Schakal programme could be expanded later, with the possibility of acquiring up to 200 extra vehicles.

By Tamilla Hasanova