Germany is moving forward with one of its largest land-force modernization programs in recent years, preparing to authorize a €7 billion procurement for 424 wheeled armored vehicles. The acquisition includes 274 reconnaissance vehicles from General Dynamics and 150 “Schakal” infantry fighting vehicles developed by Artec GmbH. Parliamentary approval by the budget committee is expected within days, allowing production to begin before scheduled deliveries in 2027.
The General Dynamics deal, valued at €3.5 billion, involves participation from German defense companies such as Hensoldt AG and Rheinmetall AG, which will contribute to sensor, armor, and communication systems. The framework also provides an option for 82 additional scout vehicles, potentially increasing the total to 356 units and raising the contract’s value to €4.6 billion. This scalable structure offers flexibility for the Bundeswehr to adjust fleet size and production tempo based on operational and financial requirements.
The Schakal program will be managed through the OCCAR European defense procurement agency and carried out by Artec GmbH, the consortium behind the Boxer family of armored vehicles. Deliveries are set between 2027 and 2031, supplying German infantry units with a highly mobile, modular, and networked fighting vehicle compatible with NATO standards. The initial 150-vehicle order includes an option for up to 200 additional units, allowing expansion if future needs arise.
This procurement forms part of a broader €7.5 billion modernization effort, which also includes the acquisition of Evolved Sea Sparrow Missiles (ESSM) in cooperation with Raytheon, Diehl Defence, and MBDA Deutschland, as well as the purchase of Eurofighter Tranche 5 aircraft.
Following Russia’s invasion of Ukraine in 2022, Berlin initiated its so-called “Zeitenwende” (“turning point”) strategy, marked by the creation of a €100 billion special defense fund to accelerate modernization and replenish capabilities. As a result, Germany’s defense expenditure surged to 2.12% of GDP in 2024, meeting NATO’s spending benchmark for the first time. The government aims to further increase this ratio to 3.5% by 2029, supported by a long-term €400 billion financing program.
Beyond procurement, Germany has also expanded its forward presence in Eastern Europe, notably through the formation of the 45th Panzer Brigade permanently stationed in Lithuania—a historic first for the Bundeswehr. Once fully operational in 2027, the brigade will represent a cornerstone of Germany’s strengthened role in NATO’s collective defense posture.
