Opportunity Alert: Bidding for Greek Military Vehicle Contracts

The choice to replace two iconic vehicles of the Greek Armed Forces, the Stagier trucks and the Mercedes-Benz GD jeeps, through a procurement process with an initial budget estimated at 550 million euros, ignites the interest of all significant automakers engaged in defense, alongside various firms that specialize in the outfitting of such vehicles.

According to sources, several informal presentations have already taken place in Athens by international groups, while the appropriate departments of the Ministry of National Defense are diligently working on the specifications of the vehicles and other criteria of the procurement. The tender will undoubtedly be competitive; however, the specific number of vehicles and the exact types required by the Armed Forces have yet to be determined.

This particular acquisition is of additional importance, as it is anticipated to be the initial step in revitalizing the Greek defense sector, particularly the HELLENIC VEHICLE INDUSTRY (ELVO), which is set for sale under Israeli interests following the conclusion of the tender. ELVO envisages that it could become the manufacturing site where a significant portion of the assembly for the selected vehicles will take place over time.

Moreover, the Israeli firm Plasan, which possesses a similar vehicle that may participate in the tender, is also part of the consortium looking to acquire ELVO. Recently, Minister of National Defense Nikos Panagiotopoulos stated in Parliament that ELVO, “after the prolonged liquidation process, has become a legitimate purchaser and can thus engage in any tender procedures for the provision of military supplies” for the Armed Forces, provided there is a specific demand and alignment with the current regulatory framework.

Undoubtedly, the Plasan group isn’t the sole contender. Enterprises from Italy, Germany, France, and the U.S. are expected to compete once the tender is officially announced. Observers following the pertinent developments assert that Mercedes-Benz Defense Vehicles will express interest. Even if a Mercedes-Benz vehicle is not chosen, there is a possibility that its engines may still be utilized, as indicated by the same sources. Another German firm anticipated to show interest is Rheinmetall.

From the United States, Oshkosh Corporation, formerly Oshkosh Truck, is reportedly already keen on the industry, which specializes in designing and manufacturing specialized trucks, military vehicles, truck bodies, airport fire suppression systems, and associated equipment.

Italy’s Iveco Defense Vehicles, part of the Agnelli group and located in Bolzano, Northern Italy, is projected to be a formidable candidate. Founded in 1937, it specializes in military machinery and joined the Iveco group in 1975. Recently, Iveco Defense Vehicles secured a contract from France, which took many by surprise.

This surprise stems from the fact that it is perceived as a desirable market for Renault Trucks Defense, which, in collaboration with Acmat and Panhard, has consolidated expertise and capabilities under the new unified brand Arquus. The Renault Trucks Defense division is completely owned by Renault Trucks, which is overseen by the Volvo Group, no longer affiliated with the similarly named passenger vehicles that are under Chinese ownership.

Interest from the MAN Group is also anticipated, while prior to the announcement of the tender, it’s believed that other entities may emerge, possibly leading to joint ventures in the future.