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German Start-Up Seeks Carmakers to Re-arm Europe

Financial Times Companies •
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Europe must pair defence tech companies with carmakers to build capacity against Russia, says Marc Wietfeld, co-founder of Munich-based ARX Robotics. Rather than build expensive new factories, Europe should tap existing industrial muscle to produce unmanned systems defining the war in Ukraine. Wietfeld argues legacy manufacturers are ideal for simpler products like unmanned ground vehicles (UGVs) that deliver supplies and evacuate wounded soldiers.

ARX aims to raise capacity eightfold to an annual 8,000 vehicles at a bigger site outside Munich beginning production next month. Demand for UGVs is expected to rapidly outstrip this new capacity. The German government pushes for more tie-ups between the beleaguered car industry and the booming defence sector struggling to meet surging demand.

Some collaborations have emerged, such as Volkswagen's deal for its Osnabrück factory to be used by Israeli weapons company Rafael to make Iron Dome parts. However, some in Berlin see a lack of enthusiasm from established defence players reluctant to "share their cake." Wietfeld says collaboration is the only way to build resilience. ARX has already partnered with German engine maker Deutz, which adapted lines to manufacture the Gereon flagship UGV.

It also works with automotive supplier Schaeffler and discusses with Bosch. Wietfeld founded ARX in 2021 with two former soldiers amid alarm European armies failed to adapt to unmanned systems. He recalls seeing a multimillion-euro Leopard 2 tank destroyed by a cheap Russian drone in 2024, realizing German superiority had to be something else.

Hundreds of ARX's Gereon vehicles are now used on the battlefield in Ukraine.