Rheinmetall Strikes German-Dutch $2B Airmobile Vehicles Deal

The German and Dutch armed forces have contracted with Rheinmetall to supply up to 3,058 Caracal airmobile platforms for €1.9 billion (a little over $2 billion).

This multiyear framework contract includes up to 2,054 vehicles earmarked for Germany and 1,004 for the Netherlands.  As a first step, a firm order from the framework contract has been placed for 1,508 vehicles worth approximately €870 million, including value added tax. To finance the procurement project, Germany is drawing on the special fund set up last year for reequipping the Bundeswehr.

The Caracal is the product of a partnership between Rheinmetall, Mercedes-Benz AG and Armoured Car Systems GmbH. Delivery of the first trial models is scheduled to take place as early as the first quarter of 2024, with the start of delivery in series planned for early 2025.

A 4x4 all-wheel-drive vehicle, the Caracal is a mobile platform specially designed to meet the needs of airmobile formations and special operations forces.

The tendering process, which began in October 2022, was completed in two fast-paced proposal phases. In the end, Rheinmetall put forward the most economical proposal, with price and technical performance converging to overcome the remaining competitor.

The Caracal is based on a commercial off-the-shelf chassis of the new G-model 464 series from Mercedes-Benz.