Germany to order 424 wheeled combat vehicles in new €7 billion modernization plan.

Germany is preparing to approve a new procurement worth almost €7 billion for 424 new wheeled armoured vehicles, covering 274 scout vehicles from General Dynamics and 150 Schakal infantry fighting vehicles built by Artec GmbH.

On October 13, 2025, Reuters announced that the German government is preparing to approve a procurement worth almost €7 billion for 424 new wheeled armoured vehicles. The package covers 274 scout vehicles from General Dynamics and 150 Schakal infantry fighting vehicles built by Artec GmbH. Parliamentary approval is expected within days, enabling production to start ahead of 2027 deliveries.
Follow Army Recognition on Google News at this link

The Schakal vehicle procurement will be executed through the European defence procurement agency OCCAR and assigned to Artec GmbH, a joint venture between KNDS and Rheinmetall, and already responsible for the Boxer armoured vehicle program. (Picture source: German MoD)

Germany is preparing to authorize a new military procurement package, this time for 424 wheeled armoured vehicles worth nearly €7 billion ($8.1 billion), marking one of the Bundeswehr’s largest ground-force modernization efforts in recent years. The lower house of parliament’s budget committee is expected to approve the plan within days, enabling the Ministry of Defence to proceed with two major vehicle programs alongside additional missile acquisitions. The first project concerns a framework agreement with General Dynamics for the development and procurement of 274 armoured scout vehicles valued at about €3.5 billion, while the second involves 150 “Schakal” wheeled armoured infantry fighting vehicles for roughly €3.4 billion. The combined effort fits into Berlin’s ongoing expansion of its land forces to address long-term capability requirements identified since Russia’s invasion of Ukraine.

The General Dynamics contract covers new reconnaissance vehicles expected to enter delivery in 2028, with industrial participation from Hensoldt AG and Rheinmetall AG in sensor, armor, and communications systems. The agreement includes an option for a further 82 scout vehicles, which would raise the total to 356 and increase the overall value to approximately €4.6 billion. By structuring the acquisition under a scalable framework, Germany ensures flexibility in its fleet size and production tempo according to operational and budgetary conditions. The Bundeswehr’s modernization schedule positions this program within the second half of the decade, aiming to replace legacy platforms and enhance the reconnaissance capability of mechanized brigades.

The Schakal vehicle procurement will be executed through the European defence procurement agency OCCAR and assigned to Artec GmbH, a joint venture between KNDS and Rheinmetall, responsible for the Boxer armoured vehicle family. Deliveries are planned between 2027 and 2031, providing Germany’s infantry units with a wheeled armoured fighting vehicle featuring high mobility, modular protection, and networked communication systems compatible with NATO standards. The order for 150 vehicles includes an expansion option for up to 200 additional units, allowing a potential total of 350 Schakal vehicles if requirements grow. Using the OCCAR framework provides standardized contracting procedures and industrial oversight shared among European partners, ensuring transparent management of costs and delivery timelines.

This new purchase of armored vehicles follows a broader €7.5 billion modernization effort that also includes the purchase of Evolved Sea Sparrow Missiles (ESSM) valued at €386 million. The ESSM acquisition will be conducted with U.S. manufacturer Raytheon in cooperation with Diehl Defence, MBDA Deutschland, and RAM-System GmbH, with deliveries expected between 2031 and 2033. These missiles are designed to strengthen the naval air defense capabilities of Germany’s fleet, complementing the ongoing upgrades to frigates and multi-mission ships. Germany’s parliament also recently approved a €7 billion package for Tranche 5 Eurofighter aircraft, which includes €3.75 billion for twenty new aircraft with advanced EScan radars and €1.13 billion for electronic warfare upgrades. As demonstrated almost every month, since the Russian invasion of Ukraine in 2022, Germany has visibly embarked on one of its most far-reaching defence transformations in decades, reshaping both its budgetary framework and procurement ambitions.

Almost immediately after the invasion, the government under Chancellor Olaf Scholz declared a “Zeitenwende,” signalling a strategic break with past restraint. Central to that shift was the establishment of a €100 billion special defence fund intended to fast-track modernization and replenish capabilities transferred to Ukraine. That fund allowed Berlin to bypass some of the constraints of routine budget caps and deploy funds rapidly to priority areas. With that envelope in place, Germany began a trajectory of sharply increased military outlays and accelerated procurement, especially from 2023 onward. In 2024 alone, Germany’s military spending rose by 28 percent, reaching $88.5 billion, making it the largest military spender in Central and Western Europe and the fourth‐largest globally.

That same year marked the first time Germany met the NATO guideline of allocating 2 percent of GDP to defence, submitting a figure of 2.12 percent. Before the war, Germany’s share was much lower: in 2022, defence spending stood at 1.38 percent of GDP, rising to about 1.64 percent in 2023 before crossing the threshold in 2024. Analysts note that much of the jump in 2024 was enabled by the special fund, allowing acceleration in procurements and modernization efforts at a scale not previously feasible. Yet the special fund is not a permanent fix. Berlin has committed to making the shift from extraordinary to structural. By 2029, Germany plans to raise defence spending to 3.5 percent of GDP, supported by a nearly €400 billion borrowing programme. That framework is already visible in draft budgets: the 2025 draft foresees Defence outlays of €95 billion, rising toward a cumulative €162 billion by 2029, including annual contributions toward Ukraine of €8.5 billion under some projections.

In 2024, the pledged military aid to Ukraine totaled approximately €7.1 billion, and the draft 2025 budget envisages €8.3 billion more. Some of that aid corresponds directly to systems of Bundeswehr origin or replacements for equipment transferred to Ukraine. Germany has also broken a new ground in its forward deployment policies. In April 2025, it activated the 45th Panzer Brigade (“Litauen Brigade”) in Lithuania, marking the first permanent overseas brigade deployment in German history. The brigade is designed to number 4,800 soldiers and 200 civilian staff by full operational capacity in 2027, and includes heavy mechanized units and administrative elements. Some estimate that the associated base infrastructure and equipment costs could exceed €6–9 billion, with annual operating costs of around €800 million. The new brigade is intended to subsume Germany’s existing NATO Enhanced Forward Presence battlegroup in Lithuania by 2026.

Written by Jérôme Brahy

Jérôme Brahy is a defense analyst and documentalist at Army Recognition. He specializes in naval modernization, aviation, drones, armored vehicles, and artillery, with a focus on strategic developments in the United States, China, Ukraine, Russia, Türkiye, and Belgium. His analyses go beyond the facts, providing context, identifying key actors, and explaining why defense news matters on a global scale.