Iveco has reached a significant agreement to supply functional parts for armored vehicles as part of a joint venture between Italian defense giant Leonardo and German defense firm Rheinmetall. This collaboration was initially announced in October, marking a strategic partnership aimed at developing new main battle tanks to modernize the Italian Armyโs aging fleet, specifically the Ariete tanks.
The union between Leonardo and Rheinmetall has led to the establishment of a new entity, Leonardo Rheinmetall Military Vehicles. Within this framework, Iveco is expected to contribute approximately 15 percent of the overall activities focused on the design and production of tracked combat ground vehicles. According to a press release from Iveco, this partnership will capitalize on the companyโs extensive experience in advanced propulsion and drivetrain systems tailored for military vehicles, as well as innovative protection technologies.
Ivecoโs relationship with Leonardo is underscored by their long-standing collaboration through the Iveco โ Oto Melara Consortium. This partnership has already proven effective, as evidenced by a contract secured in July for the delivery of 28 Centauro anti-tank vehicles to the Italian government. This deal also includes a comprehensive decade-long logistic support plan, showcasing the depth of the cooperation between the two companies.
Furthermore, Iveco is broadening its partnerships to enhance its military capabilities. The company recently established a cooperation agreement with German firm RENK to accelerate the production of military propulsion systems designed for tracked vehicles. This move signals Ivecoโs commitment to improving its operational efficiency and technological advancement in military transportation solutions.
Ivecoโs strategic initiatives and partnerships have led to a remarkable growth in its order portfolio, which has surpassed 4 billion euros (approximately $4.2 billion) as reported last year. Among its notable successes, the Brazilian Army awarded Iveco a contract valued at 1.4 billion Brazilian reals (around $257.3 million) for the purchase of 420 LMV-BR 2 Light Multirole Vehicles.
In addition, earlier this year, Australia received its first delivery of Military Utility Vehicles (MUVs) manufactured by Iveco, following a significant deal worth 42.5 million euros (approximately $46 million), encompassing 125 MUVs along with command support systems and radio communications links.
These developments highlight Ivecoโs robust position in the defense sector, driven by strategic alliances and a growing portfolio that reflects the companyโs increasing influence and capabilities in military vehicle production. The collaboration with Leonardo and Rheinmetall represents a crucial step forward in enhancing the operational readiness of armed forces through innovative and reliable vehicle solutions.
