Ukraine war reignites competition among tank manufacturers

From Kursk in Russia to El Alamein and the Ardennes in Egypt, we thought the great tank battles had been consigned to the dustbin of history. Now, with the outbreak of the Russo-Ukrainian war, tanks are once again in the spotlight, and even if they are not deployed on the scale of World War II, other equipment (artillery, missiles, drones, etc.) also play a vital role. Since 2022, in this new military context, competition has begun between German, American and South Korean manufacturers to equip the armies of the Old Continent, while Russian industry is on the rise.

Italy just gave the Italians a surprise. On July 3, Italian aerospace and defense company Leonardo announced a partnership with Germany’s Rheinmetall Group to supply the Italian army with a “new battle tank,” the Panther KF51. The agreement provides for the creation of a 50-50 joint venture in Italy, which will also produce new “Italianized” Lynx armored vehicles for Esercito Italiano. Among other things, “this agreement will open up new global markets for us, where we cannot compete as an independent company,” Leonardo General Manager Roberto Cingolani said in a statement. Interview Financial Times July 7th.

This collaboration marks the end of Leonardo’s “strategic alliance” with the Franco-German KNDS, which was planned for the end of 2023, aimed at forming “a truly European group” and “closer cooperation in the field of land defense electronics”. At the time, Rome wanted to buy 133 Leopard 2A8 tanks, the latest generation of armored vehicles, from Krauss-Maffei Wegmann, the German branch of KNDS; and above all, integrate them into the Main Ground Combat System (MGCS), since Paris wanted to invite Rome to rebalance its relations with Berlin in this Franco-German plan.

Ambitious plans

However, the alliance does not provide a clear long-term strategic outlook for Leonardo, with Singorani explaining that Leonardo’s technological contribution is “minimal” and limited to a few components on KNDS’ existing tanks. Instead, 60% of the production (electronics, turrets, etc.), certification tests and logistics of the Italian-German joint venture will take place on the peninsula, reflecting the desire of Italian Parliament President Giorgia Meloni to strengthen her country’s position in Europe while modernizing the armed forces.

The agreement marks a milestone in the consolidation of Europe’s fragmented defense industry and technology base. It also poses a threat to MGCS, an ambitious European program to replace France’s Leclerc tanks and Germany’s Leopard 2 tanks by 2040. “By then, the German and Italian armies will be heavily equipped with Leopard 2A8 and new KF51 heavy tanks, and the service life of the tanks is 40 years. How will MGCS play a role?” asked Marc Chasilan, an arms engineer and international consultant.

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