• UPDATE: Rheinmetall, KNDS to Supply 200 Puma Infantry Fighting Vehicles to German Army in €4.2 Billion Deal
KOBLENZ, Germany – A joint venture between Rheinmetall and KNDS Deutschland has been commissioned to supply 200 Puma Infantry Fighting Vehicles to the German military in a deal valued at approximately €4.2 billion.
The contract amendment was signed at the Federal Office for Equipment, Information Technology and In-Service Support of the Bundeswehr (BAAINBw).
What is new?
The German Bundeswehr will significantly expand its fleet of Puma Infantry Fighting Vehicles (IFVs) after commissioning Projekt System & Management GmbH (PSM) to supply an additional 200 units. PSM is a joint venture between Rheinmetall and KNDS Deutschland. The total gross value of the procurement is €4.2 billion, which will be split evenly between a Rheinmetall subsidiary, Rheinmetall Landsysteme GmbH, and KNDS, with each receiving €2.1 billion. The contract is scheduled to take legal effect in January 2026, with the first vehicle deliveries planned for mid-2028.
Contract Details
This order is an enlargement of an existing framework contract awarded to PSM GmbH in May 2023, which included an initial order for 50 vehicles. The new procurement of 200 combat vehicles also covers corresponding protection modules and storage containers. A further contract amendment is planned for mid-2026 to bring the vehicles to the “S2 construction status,” which aims to eliminate obsolescence and add new capabilities, including drone defense based on the turret of the Jackal armoured vehicle.
Vehicle Modernization and Capabilities
The Puma IFV is the primary weapon system of the German armoured infantry, designed to carry a nine-person crew consisting of a commander, gunner, driver, and a six-soldier unit. The vehicle features modular protection and is capable of operating in networked missions. Separately, the BAAINBw commissioned the comprehensive modernization of 297 existing Puma IFVs between 2023 and 2024. This retrofit program, set to be completed in 2029, will bring the vehicles to the S1 series standard by integrating high-resolution camera systems, the MELLS multi-role light guided missile system, and digital radio equipment.
About this company
Rheinmetall AG is a German defense and automotive technology group that produces military vehicles, air-defense systems, munitions, and sensors. For this contract, the company is operating through its joint venture with KNDS Deutschland, known as Projekt System & Management GmbH (PSM). Both Rheinmetall, via its subsidiary Rheinmetall Landsysteme GmbH, and KNDS are implementing the project as subcontractors to the PSM joint venture.
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