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Leonardo CEO denies talks with automakers on military production
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Leonardo CEO denies talks with automakers on military production
Mar 6, 2025 5:29 AM

ROME, March 6 (Reuters) - Italy's Leonardo is

not talking to automotive producers, such as Stellantis ( STLA )

, about possible partnerships to produce military

equipment, the state-controlled defence company's chief

executive said on Thursday.

As Europe sets out to raise military spending - with EU

leaders meeting to discuss proposals to mobilise up to 800

billion euros ($843 billion) for rearmament - unused car plants

across the bloc are seen as a quick way of ramping up military

production while reviving a suffering industry.

In Germany, defence companies are seeking more capacity,

while carmakers, for decades the country's economic powerhouse,

are cutting jobs and shutting plants amid slowing demand and a

faltering electric vehicle transition.

"We do not have any ongoing discussions with carmakers, too

early, it would be impossible," Leonardo CEO Roberto Cingolani

said at a press conference in Rome.

Cingolani said the car industry could make a limited

contribution to efforts to boost defence production.

"In a certain way the automotive industry could be used

for some components... but (a production conversion) from cars

to tanks would be very hard," Cingolani said.

The Leonardo CEO said that defence companies would have

to make choices on ways to increase their production in the face

of a spike in defence spending and the consequent rise in

orders.

He repeated that alliances would be the way forward to

produce more without having to, necessarily, invest in new

production facilities.

He conceded that the automotive industry in Europe needed

help after suffering from "decisions that were not

technologically neutral, but going from cars to tanks is not the

solution".

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