PSM, a joint venture (JV) company of Rheinmetall, has secured a $1.24bn (€1.04bn) order to upgrade the first lot of Puma infantry fighting vehicles (IFVs) of the German armed forces (Bundeswehr).

The order involves upgrading a total of 154 vehicles. Rheinmetall’s share in the order will be around €501m.

The overhauling works are scheduled to begin next month and are expected to complete in 2029.

Bundeswehr plans to upgrade its existing fleet of 350 Puma vehicles up to S1 enhanced design status. However, 13 driver training vehicles will not be included in this modernisation programme.

The revamped IFV will feature standoff-capable effectors such as the MELLS multirole lightweight guided missile system, additional sensors including the new driver’s vision system and an improved command-and-control architecture among other features.

Around 40 Puma IFVs have already been upgraded to S1 status for the NATO High Readiness Joint Task Force VJTF 2023.

The contract with PSM also includes an option for the modernisation of the remaining 143 Puma vehicles. If exercised, the order will result in an additional sales volume of $975.73m (€820m) for the JV.

The order is also expected to generate consortium-internal subcontracting, which is expected to result in additional orders in the three-digit million-euro range for Rheinmetall.

PSM is jointly owned by Rheinmetall and Krauss-Maffei Wegmann. Both companies own a 50% stake each in the JV.

Earlier this month, Rheinmetall unveiled the latest member of its Mission Master autonomous uncrewed ground vehicle (UGV) family, the Mission Master XT.

The diesel-powered vehicle is designed to operate in extreme terrains.