The German government is preparing to sign off on a major arms procurement package worth nearly €7 billion ($8.1 billion) for 424 new wheeled armored vehicles, marking one of the largest modernization efforts for the Bundeswehr in recent years, according to internal finance ministry documents.
The budget committee of the Bundestag (lower house of parliament) is expected to approve the deal within days, signaling strong political backing for the defense upgrade amid shifting European security dynamics.
The deal consists of two key contracts:
- 274 “scout vehicles” to be developed and delivered by General Dynamics, with an initial value of approximately €3.5 billion. Deliveries are scheduled to begin in 2028.
- 150 “Schakal” armored infantry fighting vehicles to be supplied by Artec GmbH, a joint venture between KNDS and Rheinmetall, under a contract worth around €3.4 billion. These vehicles will be delivered between 2027 and 2031 via the European defense procurement agency OCCAR.
The contracts include substantial expansion options:
- An option to procure up to 82 additional scout vehicles, which would raise the total to 356 and the potential contract value to €4.6 billion.
- The Schakal program also allows for up to 200 additional units, depending on future defense needs and budget approvals.
This sweeping modernization initiative comes as Germany continues to overhaul its armed forces in response to growing security threats, particularly following the war in Ukraine and broader NATO defense obligations.
Defense analysts say the new armored vehicles will significantly enhance the Bundeswehr’s mobility, reconnaissance, and infantry protection capabilities, while supporting Germany’s goal of creating more combat-ready brigades under NATO commitments.
The acquisition also reinforces Germany’s deepening partnership with both European and transatlantic defense manufacturers.
The Bundestag vote on the package is expected later this week.
