Germany and France to Assume Control of KNDS to Secure European Defense

Germany and France are preparing a joint state-led takeover of KNDS, the European Union’s largest manufacturer of main battle tanks and armored vehicles. The move signals a shift toward direct government intervention to consolidate the continent’s defense industrial base and resolve long-standing production bottlenecks. KNDS, a holding company formed by the 2015 merger of Germany’s Krauss-Maffei Wegmann (KMW) and France’s Nexter, is responsible for the Leopard 2 and Leclerc tank platforms. Under the new arrangement, Berlin and Paris will exert greater control over the group’s strategic direction, particularly regarding the development of the Main Ground Combat System (MGCS), the multi-billion euro successor to current heavy armor fleets. Accelerating the MGCS Program The transition to state-led oversight follows years of industrial friction between German and French contractors over workshares and technical specifications. By assuming control, the two governments aim to bypass corporate disputes that have delayed the MGCS project, which is scheduled for deployment between 2035 and 2040. The program is central to Europe’s long-term strategy to reduce reliance on non-European…