Rheinmetall CEO expects tank and artillery costs to decrease in the coming years
German defense conglomerate Rheinmetall's CEO Armin Papperger said that in the coming years, the costs of tanks, armored vehicles, and artillery will decrease.
While commenting on concerns from the outside world about the potential for European defense spending to trigger inflation and harm taxpayers, Papperger told the Financial Times that the costs of armored vehicles and artillery systems will decrease rather than increase.
He believes that the savings achieved through increased production and broader application of automation technologies should benefit both manufacturers and their customers.
Papperger added that in the past three years, the company has increased its production capacity tenfold to meet growing demand, and ammunition costs have already started to decline. However, he noted that achieving cost savings through expanded production is more difficult when it comes to tanks and armored vehicles.
Meanwhile, he pointed out that the company expects to receive "tens of thousands" of orders in the next 12 months, involving products such as the Boxer and Puma armored vehicles and the Leopard 2 tank.
According to the Financial Times, Rheinmetall expects to secure approximately 8 billion euros in new orders by June 2026. The total orders in the previous 12 months were 5.5 billion euros.
Original: www.toutiao.com/article/1840288093505802/
Statement: This article represents the views of the author himself.