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Daily Newsletter

11 July 2023

Daily Newsletter

11 July 2023

Germany and the Netherlands sign €1.9bn vehicles contract with Rheinmetall

Germany and the Netherlands will collaborate on a bilateral procurement project with Rheinmetall for the Caracal mobile platform.

Harry McNeil July 10 2023

The German and Dutch armed forces have awarded Rheinmetall a multiyear framework contract worth €1.9bn ($2.1bn) for the supply of up to 3,058 Caracal airmobile platforms.

Based on the new military Mercedes G-model 464 series, the high-performance vehicles will be delivered in multiple phases starting in 2024.

Germany and the Netherlands collaborate on a bilateral procurement project

Germany and the Netherlands have joined forces to procure airmobile vehicles in response to the urgent need for new defence capabilities and the tense security situation.

The contract will see up to 2,054 Caracal vehicles delivered to Germany and 1,004 to the Netherlands. The project is a bilateral effort, highlighting the close working relationship between the two countries armed forces and their shared requirements.

After a tendering process, Rheinmetall emerged as the preferred supplier for the Caracal airmobile platforms.

This isn't the first time Germany and the Netherlands have cooperated on a defence procurement project together. According to GlobalData's "Germany Defence Market 2022-2027" report, they are also working on a next-generation frigate together.

Caracal: A mobile platform designed for airmobile formations and special operations forces

The Caracal is an airmobile vehicle developed through a partnership between Rheinmetall, Mercedes-Benz AG, and Armoured Car Systems GmbH. The Caracal offers enhanced mobility and versatility, built on the new G-model 464 series from Mercedes-Benz.

As a 4x4 all-wheel-drive vehicle, it has been specially designed to meet the requirements of airmobile formations and special operations forces.

Rheinmetall expands its portfolio and plans large-scale production with partners

With the inclusion of the Caracal, Rheinmetall's tactical vehicle systems now cover the lightweight 4x4 segment, weighing less than 10 tons. Recognizing the growth potential in this sector, Rheinmetall, together with partners Mercedes-Benz AG and Armoured Car Systems GmbH, is preparing for full-scale, large-volume series production.

All German and Dutch vehicles will be assembled in Ede, the Netherlands, and Eindhoven, ensuring production scalability and contributing to sustained value added in the partner country.

The initial delivery of trial models is scheduled for the first quarter of 2024, with series production commencing in early 2025. Caracal's technologically advanced platform, based on a proven commercial off-the-shelf chassis, ensures long service life and offers logistic support to users worldwide.

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