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Billion-Euro Contract for Rheinmetall – Bundeswehr Upgrading Puma Infantry Fighting Vehicle to New Design Status

Issue 108

Rheinmetall has won a major order from the German Bundeswehr in the armoured vehicle domain, representing a sales volume of well over half a billion euros. Issued through the joint venture company PSM GmbH, the contract encompasses upgrading the first lot of the Bundeswehr’s Puma infantry fighting vehicle, bringing them up to a uniform enhanced design status. PSM GmbH is co-owned by Rheinmetall and Krauss-Maffei Wegmann, each holding 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. 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 consortium-internal subcontracting, e.g., in the electronic vision systems domain, is expected to mean additional orders in the three-digit million-euro range.