Italy’s Leonardo and Franco-German consortium KNDS have announced a strategic alliance to develop and produce new armored vehicles for the European market, including the Main Ground Combat System (MGCS), a future battle tank that will replace the current Leopard 2 and Leclerc models.
The alliance, which was signed under the auspices of the Italian Ministry of Defense, aims to create a truly European Defense Group and to cooperate more closely in the field of land based electronics, according to a joint statement released on Wednesday.
The agreement supports the strategy defined by the Italian MoD in the Documento Programmatico Difesa 2023-2025 and in the Action Plan of the Agreement recently signed by the Governments of Italy and Germany, which envisage a stronger integration of the European defense industry and a common vision for the future of land warfare.
Leonardo CEO Roberto Cingolani said in October that he was in favor of “giant” joint ventures in Europe to “compete on level terms with U.S. and China colossuses.” KNDS is a consortium of Germany’s Krauss-Maffei Wegmann and France’s Nexter, which are already working together on the MGCS project.
The new alliance will enable Italy to join the MGCS program, which has been delayed by differences between France and Germany over its direction and specifications. The MGCS is expected to be operational by 2035 and to be the backbone of the European land forces.
In addition, Leonardo and KNDS have also signed an agreement to jointly implement the planned Main Battle Tank (MBT) procurement program with a solution based on Leopard 2 A8, a modernized version of the Leopard 2 that features improved protection, mobility and firepower. The companies will collaborate in the development, manufacturing and maintenance of the Leopard 2 A8 solution for the Italian Army, as well as the support platforms.
The alliance between Leonardo and KNDS aims to create further production and development capabilities in Italy and to use these for future European and export projects. Italy intends to buy around 133 Leopard 2 A8 tanks, with a total budget of €4 billion ($4.5 billion) by 2037, to replenish its depleted stock of tanks as the Ukraine war highlights the need for land warfare capabilities.
Another possible venture for the alliance could be to build a new, much needed Infantry Fighting Vehicle (IFV) for the Italian army to replace its ageing Dardo vehicles. The Italian MoD is currently working on a €15 billion program for the renewal of its Land Forces, which would be run in a “multi-national context, based on alliances with solid European firms that already work with Italy.”
The strategic alliance between Leonardo and KNDS is a significant step towards a more integrated and competitive European defense industry, which could benefit from the increased demand for land systems in the continent and beyond.
Main Ground Combat System (MGCS)
The Main Ground Combat System (MGCS) is a joint project between Germany and France to develop a new generation of main battle tanks and other land warfare systems to replace their current Leopard 2 and Leclerc tanks. The MGCS is expected to be operational by 2035 and to be the backbone of the European land forces. The MGCS is not a single vehicle, but a series of systems conceived around a common platform. The MGCS will feature next-generation technologies such as improved protection, mobility, firepower, and network capabilities. The MGCS is led by Germany, with the participation of the Franco-German consortium KNDS and the German company Rheinmetall. The MGCS aims to create a truly European Defense Group and to cooperate with other European countries that have shown interest in the project, such as Italy, Norway, Poland, Spain, Sweden and the United Kingdom1
