**Paris Agreement for Future Tank Development**
On January 23, 2023, in Paris, armored-vehicle manufacturers KNDS (Germany and France) and Rheinmetall, along with defense-electronics firm Thales, signed a shareholder agreement establishing a project company focused on developing a future main battle tank for Germany and France. This marks a significant step toward commencing actual work on a program that had faced delays due to disputes between stakeholders.
**Project Structure and Equity Distribution**
The new company, based in Cologne, Germany, will be equally owned, with KNDS Deutschland, KNDS France, Rheinmetall, and Thales each holding 25% of the shares. The work distribution between France and Germany will be balanced at 50/50, as confirmed by Emmanuel Chiva, the head of the French armament agency DGA, who noted the complexities in establishing this balance.
**Replacement of Existing Tanks**
The future tank, designated as the Main Ground Combat System (MGCS), is intended to replace the current Leopard 2 (used by Germany) and Leclerc tanks (used by France). Despite the 2040 timeline proposed for the MGCS program, the French Armed Forces Ministry stated that the Leclerc replacement is anticipated by 2035. Meanwhile, as the timeline for MGCS development risks delays, KNDS and Rheinmetall have been advancing their own tank concepts and upgrades as interim measures for aging fleet operators.
**Market Potential and Previous Showcases**
KNDS estimates significant market potential for main battle tanks over the next 10 to 15 years, projecting demand preceding the MGCS’s anticipated deployment. At the Eurosatory defense show in Paris in 2022, KNDS showcased upgrades of the Leopard 2 and Leclerc Evolution, while Rheinmetall displayed a version of its KF51 tank featuring an uncrewed turret, signaling progress amid evolving armored warfare needs.
**Adaptation to Battlefield Threats**
Facing the evolving threats to armored vehicles—particularly from drones demonstrated in Ukraine—Rheinmetall unveiled an upgraded British Challenger tank in September 2023, which includes a 120 mm smoothbore cannon and enhanced armor for improved survivability.
**Current Production and Future Plans**
As of 2023, KNDS Deutschland continues producing the Leopard 2, with recent orders from nations such as Sweden, Lithuania, Czechia, and the Netherlands. Conversely, KNDS France has not produced Leclerc tanks since 2008 but is actively upgrading existing models for the French Army. Rheinmetall has expanded its operations by opening a new tank factory in Hungary in 2023, plans for tank production in Italy, and proposals for establishing a manufacturing facility in Ukraine capable of producing up to 400 KF51 tanks annually.
**Management and Program Structure**
The MGCS project company will serve as the prime contractor for the next phase of the future tank program, having negotiated a contract with the German federal office responsible for Bundeswehr equipment. The initiative aims to solidify key technological components and overall concepts, structured around eight main pillars, with a mix of heavy and unmanned armored vehicles equipped with state-of-the-art weapons.
**Involvement of Other Nations**
Although nations such as Italy and the Netherlands have shown interest in participating in the MGCS program, the current focus remains strictly on the French-German collaboration. KNDS has indicated that the inclusion of additional countries in the project will only be considered once the MGCS program opens to international collaboration.
