Automotivelogistics: Increased defence spending creates new opportunities for Europe’s automotive sector

Published by automotivelogistics.media

The Daimler Truck Defence brand launched in June 2026, targeting €1bn ($1.1bn) in defence revenue by 2028Daimler Truck

In response to rising geopolitical tensions around the world, NATO allies in 2025 committed to increasing defence spending to 5% of GDP by 2035. From this date, NATO member countries will need to allocate at least 3.5% of GDP to resource core defence requirements and to meet NATO Capability Targets, while allocating up to 1.5% of GDP to broader defence- and security-related investments.

Furthermore, the European Commission last year presented its ReArm Europe Plan – a proposal to leverage more than €800 billion ($913bn) in defence spending through national fiscal flexibility, a new €150bn Security Action for Europe (SAFE) loan instrument for joint procurement, potential redirection of cohesion funds and expanded European Investment Bank support.

As NATO’s major general Ulf Häussler highlighted at the Association of European Vehicle Logistics’ (ECG) annual conference in 2025, there are more and more opportunities today for vehicle logistics providers to cooperate more closely with defence organisations, especially in light of recent investment commitments and the volatility of the current geopolitical climate.