Rheinmetall Secures Major Deal as Bundeswehr Transforms Puma Armored Vehicle with Cutting-Edge Upgrades

 Rheinmetall has secured a significant contract from the German Bundeswehr in the armored vehicle sector, representing a transaction volume of well over €500 million. Issued via the joint venture firm PSM GmbH, the agreement involves the enhancement of the initial batch of the Bundeswehr’s Puma infantry fighting vehicles, advancing them to a uniform improved design status. PSM GmbH is co-owned by Rheinmetall and Krauss-Maffei Wegmann, each possessing a 50 percent stake in the enterprise. 

The agreement for modernizing Germany’s fleet of Puma IFVs was finalized on 28 June 2021 at the Federal Office for Bundeswehr Equipment, Information Technology, and In-Service Support (BAAINBw) in Koblenz. By awarding this contract, the Bundeswehr is staying on course toward a fully operational, completely digitized fleet of infantry fighting vehicles. Work is scheduled to commence immediately in July 2021 and is projected to wrap up by 2029. 

 Now official, the initial phase of the order includes 154 vehicles, yielding sales for the consortium of €1.04 billion. Rheinmetall’s portion here totals €501 million (including VAT), which will be recorded as an incoming order at the beginning of the third quarter of 2021. For Rheinmetall, anticipated internal subcontracting within the consortium, particularly in electronic vision systems, is poised to lead to additional orders in the three-digit million-euro spectrum. 

The contract also comprises an option for the enhancement of an additional 143 Puma infantry fighting vehicles, which would result in extra sales volume of €820 million for the PSM consortium, inclusive of VAT. Well over half of this sum would be allocated to Rheinmetall. 

 The extensive refurbishment now being initiated aims to elevate the majority of the initial batch of the Bundeswehr’s existing fleet of 350 Puma vehicles to S1 enhanced design status. In anticipation of the NATO High Readiness Joint Task Force VJTF 2023, which will be provided by the Bundeswehr, forty Puma IFVs have already been upgraded to S1 status. From Germany’s fleet of 350 Pumas, the only units excluded from the modernization program are the 13 driver training vehicles. 

Among other advancements, the new S1 iteration of the Puma is distinguished by standoff-capable effectors like the MELLS multirole lightweight guided missile system; added sensors such as the new driver’s vision system; and an optimized command-and-control architecture. The parabolic and driver vision systems signal the conclusion of the periscope era. For the first time, the entire crew will be able to “see through” the armor, both day and night. 

The fusion mode integrates daylight vision with a high-quality thermal image, allowing for early detection of camouflaged targets around the clock. The S1 variant of the Puma is the first Western combat vehicle that incorporates such a system as a standard feature. 

Coupled with the VJTF 2023 version of Rheinmetall’s Future Soldier – Expanded System infantry (IdZ-ES) program, the S1 version of the Puma constitutes the System Panzergrenadier. For the first time in Germany, the System Panzergrenadier connects a digitized platform – the advanced S1 version of the Puma IFV – to a soldier system featuring digital radio technology. On 18 March 2021, representing the Bundeswehr, Lieutenant General Alfons Mais, the chief of the German Army, declared the system “operationally ready.”