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Daimler Truck expands global defence business with new brand and €1 billion revenue target by 2028

By Martin Chomsky (Defence Industry Europe)

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Daimler Truck expands global defence business with new brand and €1 billion revenue target by 2028

Photo: Daimler Truck.

Daimler Truck is expanding its global defence business and has established Daimler Truck Defence as a new worldwide brand. The company said the move creates a unified market presence and supports its plan for sustained international growth.

The new brand brings together Daimler Truck’s defence activities under one identity. The portfolio will be expanded beyond Mercedes-Benz Trucks to include solutions from other Daimler Truck vehicle portfolios and brands.

Daimler Truck will invest a mid-three-digit million-euro amount over the coming years. The investment will support engineering, manufacturing, sales and service capabilities for military mobility and logistics solutions.

The company has set a target of generating 1 billion euros in defence-related revenue by 2028. Around 1,000 employees are currently engaged in Daimler Truck’s defence business.

 

 

The growth strategy is being driven mainly from the Wörth am Rhein site in Germany. Daimler Truck said it is expected to create additional demand for highly qualified specialists, with a positive impact on employment particularly at Wörth.

“Defence is a key pillar of Daimler Truck’s growth strategy. We are making targeted investments in our production facilities, the development of new solutions, and the expansion of our sales and service network,” said Karin Rådström, CEO of Daimler Truck.

“At the same time, we are leveraging Daimler Truck’s global strengths across regions and brands to scale our defence business significantly,” Rådström said. Daimler Truck said the new structure will give customers dedicated expertise and mission-specific solutions from a single source.

“Demand for reliable military mobility is growing worldwide. With our global manufacturing network, resilient supply chains, strong partnerships and expanded product portfolio, we can deliver military vehicles and mobility solutions quickly, at scale and with high standards,” said Dennis Kinzelmann, CEO Daimler Truck Defence.

“Through Daimler Truck Defence, we are bringing together the full strength of our global brands and capabilities under one global brand. Our ambition is clear: to become one of the leading providers of military mobility solutions through our global technology and production network,” Kinzelmann said.

“For military personnel in the field, reliability, readiness and support are mission-critical. They remain at the heart of everything we do,” Kinzelmann said. Daimler Truck said the new brand will unlock synergies across brands, products, processes and business units.

 

Saab

 

As part of the expansion, the company will continue investing in industrial capacity over the coming years. Daimler Truck said this will support a broader product offering and allow military vehicle programmes to be executed at significantly higher volumes.

The strategy is based on the company’s global industrial footprint and manufacturing expertise. Daimler Truck said it will focus increasingly on fleet and sustainment programmes alongside highly customised project business.

The company said its manufacturing facilities combine high-volume commercial vehicle production with dedicated defence expertise. The plants in Wörth am Rhein and Molsheim, France, form the backbone of Daimler Truck’s defence manufacturing activities in Europe.

Daimler Truck said the two sites allow military variants to be integrated into existing production lines. The company also offers local assembly of militarised Mercedes-Benz trucks in customer countries.

The company is also expanding its global service and support network. Daimler Truck said it already operates around 5,000 service locations in more than 160 countries and has a comprehensive spare-parts supply chain.

The company said continued investments will improve parts availability and service responsiveness in key regions. It said this is intended to support high operational readiness for vehicles deployed worldwide.

Daimler Truck described defence as a major growth driver for the years ahead. Recent awards include a Bundeswehr order for military logistics vehicles in the three-digit unit range.

Other programmes include a contract with the Canadian Armed Forces in cooperation with General Dynamics Land Systems covering at least 1,500 logistics trucks. Daimler Truck also cited a framework agreement with the French Armed Forces, in partnership with Arquus, for 7,000 trucks based on the Zetros platform.

The company said these programmes reflect its focus on European and transatlantic partnerships. It said they also demonstrate its emphasis on reliable industrial delivery capabilities.

Daimler Truck Defence uses components and platforms from the company’s commercial vehicle business. It also works with industry partners on technologies including autonomous driving and unmanned systems integration.

The company said it will continue to expand its defence portfolio in line with the needs of modern military operations. The future portfolio will range from light utility vehicles to heavy tactical logistics platforms equipped for mission-specific requirements.

 

Saab

 

Daimler Truck said customers will gain greater choice across capability and budget levels. By integrating additional group brands, customers will also gain access to locally available vehicle platforms adapted for military applications in their respective markets.

Beyond vehicle supply, Daimler Truck is building an integrated offering covering engineering, manufacturing, system integration, partner ecosystems and long-term in-service support. The company said it is increasingly focusing on modular platform architectures and jointly developed system solutions to meet customer requirements rapidly and flexibly.

Daimler Truck will showcase its defence portfolio at Eurosatory 2026 in Paris from 15 to 19 June. The company will present Unimog, Zetros and Arocs vehicles with mission systems and specialist configurations developed with industry partners.