Photo=Daimler Truck website
Cases of the automotive and defense industries crossing into each other’s territory are emerging one after another in the United States and Europe. Following efforts to graft the auto industry’s mass production systems onto the defense sector, moves have also appeared to apply advanced technology proven in combat to private-sector development, as the boundary between the two industries gradually blurs.
According to the Financial Times (FT) on the 3rd, Daimler Truck, the world’s largest commercial vehicle maker, is accelerating its expansion into the defense business. The company recently unveiled a plan to invest hundreds of millions of euros to develop and expand production of military vehicles, and set a goal of doubling its defense revenue to 1 billion euros (about 1.65 trillion won) by 2028. The strategy is to respond to growing military demand by leveraging its strength in commercial vehicle mass production systems, unlike traditional defense companies accustomed to small-batch production.
“We have the capability to build an industrialized mass production system,” said Karin Radstrom, CEO of Daimler Truck. “What defense ministries in various countries need most right now is to secure more production capacity as quickly as possible.”
Daimler Truck also envisions using defense not merely as a revenue source but as a springboard to enhance the competitiveness of its civilian business. A prime example is platooning technology. This refers to convoy driving in which multiple trucks automatically follow a lead vehicle carrying a driver. Demonstration projects have long been under way in the United States and Europe, but the technology has not yet reached the stage of widespread commercialization in ordinary logistics operations. Daimler Truck plans to apply autonomous driving and remote driving technologies developed in the defense sector to civilian commercial vehicles, thereby accelerating the commercialization of such technology.
“A lot of innovation is currently taking place in the defense industry, and we believe this innovation will also benefit the civilian sector,” CEO Radstrom stressed. “A significant portion of the technology and experience accumulated through defense autonomous driving projects can also be applied to the civilian business.”
Daimler Truck is not the only one bridging automobiles and defense. European automakers are seeking new growth engines by using production facilities whose utilization rates have fallen due to weak demand for defense purposes. Volkswagen, Germany’s largest automaker, is pursuing a plan to convert its plant in Osnabrück, Germany, into a defense production base during its restructuring process. Israeli defense company Rafael is considering producing components related to the interceptor missile “Iron Dome” at this plant.
France’s Renault is also broadening its footprint in the defense sector. Renault plans to join hands with French defense company Turgis Gaillard to produce drones. It recently unveiled a hybrid four-wheel-drive military vehicle together with defense company Thales.
In the United States, collaboration between the auto industry and defense is also expanding. According to The Wall Street Journal (WSJ), Ford was selected last month as a developer of a prototype vehicle for the U.S. Army’s Infantry Squad Vehicle-Heavy (ISV-H). General Motors (GM) is also expanding its military vehicle business through its defense subsidiary GM Defense, while planning to strengthen its ammunition production capacity in cooperation with Lockheed Martin.