Rheinmetall has won a major order from the German Bundeswehr in the armored vehicle domain, representing a sales volume of well over half a billion euros. Issued through the joint venture company PSM GmbH, the contract encompasses the upgrade of the first lot of the Bundeswehr’s Puma IFV Infantry Fighting Vehicle, bringing them up to uniform enhanced design status.
PSM GmbH is co-owned by Rheinmetall and Krauss-Maffei Wegmann, each of which holds a 50 percent share in the company.
The contract for modernizing Germany’s fleet of Puma IFVs was signed on 28 June 2021 at the Federal Office for Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw) in Koblenz. In awarding this contract, the Bundeswehr remains on track toward an operationally ready, fully digitized fleet of infantry fighting vehicles. Work is slated to begin immediately in July 2021 and is expected to be complete in 2029.
Now official, the initial phase of the order encompasses 154 vehicles, generating sales for the consortium of €1.04 billion. Rheinmetall’s share here comes to €501 million (with value added tax), which will be booked as an incoming order at the start of the third quarter of 2021. For Rheinmetall, anticipated
The contract also contains an option for modernization of a further 143 Puma infantry fighting vehicles, which for the PSM consortium would mean additional sales volume totalling €820 million, once again including VAT. Well over half this amount would be allotted to Rheinmetall.
Among other things, the new S1 version of the Puma is characterized by standoff-capable effectors like the MELLS multirole lightweight guided missile system;additional sensors such as the new driver’s vision system; and an improved command-and-control architecture. The parabolic and driver vision system heralds the end of the periscope era. For the first time, the entire crew will be able to “see through” the armour, day and night.