Rheinmetall secures €770mn order from German army amid defence boom
The Düsseldorf-headquartered defence firm said in a statement on Monday that the deal includes 963 vehicles with swap-body systems, which have interchangeable containers. It also includes 425 unprotected transport vehicles (UTVs), which are non-armoured trucks used in low-risk areas.
As of around 16.00 CEST, Rheinmetall shares were up around 3% on the news.
'As a reliable partner of the Bundeswehr, we are delighted to be delivering additional vehicles and thus contributing to the mobility and operational readiness of the armed forces,' said André Barthel, chairman of the board of Rheinmetall MAN military vehicles, a joint venture between MAN Truck & Bus and Rheinmetall.
The orders are booked for the third quarter, while deliveries will take place before the end of 2025.
Rheinmetall has been one of the key business beneficiaries of Europe's defence splurge, with its stock rising more than 190% year-to-date.
Russia's war in Ukraine had already lifted demand for Rheinmetall products, and now investors are hoping to benefit from greater public spending on military equipment.
Pressure from US President Donald Trump has notably encouraged Europe to boost its defence capabilities, and Germany has agreed to alter its strict debt rules to facilitate the investment.
The Bundeswehr is currently undergoing a major process to update its technology, and Germany has vowed to lift its country's defence spending to 3.5% of gross domestic product in 2029.
This year, the NATO alliance also agreed to increase defence spending from 2% to 5% of GDP by 2035.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
LeMonde
an hour ago
- LeMonde
European Commission hopes to finalize EU-US trade deal soon
Talks between European and American officials have not broken down. The deal reached by European Commission President Ursula von der Leyen and US President Donald Trump opened a new phase of discussions, which is expected to lead to the publication of a joint statement. Although not legally binding, the document is expected to outline the terms of the informal agreement that the two leaders reached at the Turnberry golf resort, which is owned by the US president and located on Scotland's west coast, on July 27. "The text is practically ready; we are now waiting for our American counterparts to get back to us to confirm the final details," said a senior European official. As he put it, "It takes two to tango." Nevertheless, Trump has already begun to implement his side of the deal by signing, on July 31, an executive order establishing the new tariff regime, including 15% tariffs on imports from the European Union. However, this executive order, set to take effect on August 7, will not resolve all outstanding issues. It only applies to "reciprocal" tariffs, which exclude cars and car parts. Therefore, the automotive industry remains subject to export taxes of 27.5% when shipping to the United States. "We expect a change to happen very soon," said the aforementioned official.
Euronews
2 hours ago
- Euronews
Trump warns EU: 35% tariffs if $600bn investment pledge unfulfilled
A controversial investment pledge forming part of the EU-US trade deal will need to be honoured by the EU or 35% blanket tariffs will be applied to the bloc, US President Donald Trump has warned. On Tuesday President Trump was quizzed on the deal he agreed by handshake with Commission President Ursula von der Leyen in Scotland on 27 July on CNBC's 'Squawk Box' via phone. He touted the US position - which a White House fact sheet stated - that the agreement included a pledge for the EU to invest $600 billion in the US by the end of his second term. "This new investment is in addition to the over $100 billion (that) EU companies already invest in the United States every year," the fact sheet stated following the deal. The European Commission is unable to design and implement investments on behalf of the private sector. The $600 billion has been described by the Commission as an indication based on the executive's contacts with industry. "It's not something the EU, as a public authority, can guarantee – it's something based on the intention of private companies," a senior official said last week. Asked on Squawk Box what teeth there were in the investment pledge element of the deal, Trump said, if it didn't happen, 'then they pay tariffs of 35%'. Trump said that the investment pledge was one of the reasons he had dropped tariffs to a blanket 15% rate, so if it is unfulfilled then higher tariffs will click back in. The EU has been approached for comment. The Commission on Tuesday suspended a package of trade countermeasures targeting €93 billions' worth of American goods which was scheduled to take effect on 7 August, as it continues to negotiate a joint statement formalising the agreement struck by von der Leyen and Trump in Scotland.
Fashion Network
3 hours ago
- Fashion Network
India accuses EU, US of double standard over Russian trade
India has sharply criticised the US and the European Union, saying it is being unfairly singled out by them over its Russian oil purchases when they both trade extensively with Moscow despite the war in Ukraine. India's criticism followed a renewed threat by US President Donald Trump on Monday to raise tariffs on goods from India over its Russian oil purchases, deepening the trade rift between the two countries. In a rare show of unity, Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) and the main opposition Congress on Tuesday condemned Trump's repeated criticism of New Delhi. India's Foreign Ministry said in a statement issued late on Monday that "it is revealing that the very nations criticising India are themselves indulging in trade with Russia". The US embassy and the EU's delegation in New Delhi did not immediately respond to a request for comment. Both the US and EU have sharply scaled back their trade ties with Russia since it launched a full-scale invasion of Ukraine in February 2022. In 2021, Russia was the EU's fifth-largest trading partner, with goods exchange worth 258 billion euros, according to the EU executive European Commission. The sudden rift between India and the US has been deepening since July 31, when Trump announced a 25% tariff on Indian goods being shipped to the US and for the first time threatened unspecified penalties for buying Russian oil. India is one of the biggest buyers of crude from Russia, importing about 1.75 million barrels per day from January to June this year, up 1% from a year ago. India has said it does not support "unilateral sanctions" by the EU. Trade experts say Trump's tariff could badly hurt India's economy. Ajay Srivastava of the New Delhi-based Global Trade Research Initiative said he expected Indian goods exports to the US to fall 30% in the current fiscal year ending March 31, to 60.6 billion dollars from 86.5 billion dollars in the 2025 fiscal year. India's equity benchmarks fell after Trump's renewed threat of harsh tariffs on goods from India. Manish Tewari, a member of parliament and Congress leader, said Trump's "disparaging remarks hurt the dignity and self-respect of Indians". "The time has come to call out this constant bullying and hectoring," he added. BJP Vice President Baijayant Jay Panda quoted Henry Kissinger - the most powerful US diplomat of the Cold War era - in a post on X: "To be an enemy of America can be dangerous, but to be a friend is fatal."
