Mercedes-Benz sees growing potential in defence sector

German carmaker Mercedes-Benz sees potential in expanding its foothold in the security and defence sector with the development of special vehicles, reported dpa.

Board member Michael Schiebe said in Stuttgart on Thursday that vehicles and chassis for security, rescue and defence purposes currently account for less than 1% of total sales.

He said the company sees this as a strategic area of development that it intends to actively shape in cooperation with partners.

Mercedes-Benz has been producing modified vehicles of this kind for more than 45 years.

The company has long been a supplier to the Bundeswehr, Germany's military.

Its G-Class vehicle, known under the name "Wolf," is in active service with more than 50 different versions ranging from medical vehicles to variants for special forces.

The Sprinter van has also served for years as a platform for various defence and civil protection variants.

The carmaker announced a cooperation with drone start-up Tytan Technologies on Wednesday.

The two companies signed a letter of intent on the sidelines of the International Aerospace Exhibition in Berlin. The centrepiece of the cooperation is to be a drone defence system, for which the Stuttgart-based brand is to provide the carrier vehicles.

Mercedes-Benz chief executive Ola Källenius recently indicated his openness to expanding the carmaker's defence business.