Germany is preparing to purchase up to €5 billion worth of armoured vehicles from Finnish defence company Patria, aiming to replace its ageing Fuchs fleet.
According to Bloomberg, the deal includes about 3,500 vehicles and falls under the Common Armoured Vehicle System (CAVS), a multinational programme involving Finland, Latvia, Sweden, Germany and Denmark. Patria’s vehicles will be based on its six- and eight-wheeled designs.
Production of the new vehicles will take place largely in Germany. Bloomberg reported that around 90 percent of the manufacturing would be handled domestically.
Germany joined the CAVS framework agreement earlier this year, enabling it to place large orders from Patria. The CAVS platform is based on Patria’s 6x6 vehicle, which has been in use since 2021 and is designed for modular configuration, troop transport and support roles.
The procurement follows Germany’s approval in March of a large-scale defence and infrastructure programme worth over €1 trillion. The country has increased defence spending after Russia’s invasion of Ukraine and its own pledge to meet NATO's defence spending targets.
Tuija Karanko, secretary general of the Association of Finnish Defence and Aerospace Industries, said the deal would be significant for Finland’s defence sector. “The value of this deal is almost double the annual turnover of the Finnish defence and aerospace industry,” she said in comments published by Yle.
Last year, the Finnish space and security sector recorded turnover of about €3 billion, according to the association.
Karanko added that the deal with Germany, which traditionally prioritises domestic defence suppliers, marked an unusual but positive development. “I am glad that Germany is making such extensive deals with the Finns,” she said.
Patria is jointly owned by the Finnish government and Norwegian company Kongsberg Defence & Aerospace, itself mostly owned by the Norwegian state.
The company has been producing its 8x8 Armoured Modular Vehicles (AMVs) since 2004. The new vehicles supplied to Germany will be based on both the 6x6 CAVS and the existing AMV platform.
While Patria declined to comment on the reported contract due to ongoing negotiations, Finnish media said interest in Finnish defence suppliers has risen since the country joined NATO in April 2023.
Germany’s decision to cooperate with Patria aligns with its broader push for military readiness, mobility, and equipment modernisation. The Fuchs vehicles Germany plans to replace entered service in the late 1970s and have undergone several upgrades since then, but are considered outdated for current operational needs.
The new deal, once finalised, would mark one of the largest military vehicle contracts between Finland and another European NATO country.
HT
