Crosetto revises costs and timelines of the new tanks program for the Army.
Interviewed on SkyTg24, Italian Defense Minister Guido Crosetto stated that the “tank program” between Leonardo and Rheinmetall “is moving forward in a reasoned way” but with a cost cut, referring to the order of Panther tanks and Lynx infantry vehicles awarded to the joint venture between Leonardo and Rheinmetall.
Cold shower then from Defense to LRMV, the equal joint venture between the Italian aerospace and defense group and the German defense giant for new tanks and combat vehicles for the Italian Army and, prospectively, for Europe established in 2024. The company, headquartered in Rome with operational headquarters in La Spezia, is responsible for the industrial development and subsequent commercialization of the new Main Battle Tank (MBT) and the new Army Armored Combat System (A2CS) platform. According to the agreements, the Panther KF51 developed by Rheinmetall will be the base for the MBT, the new main battle tank that will replace the Ariete, while the new Lynx platform will meet the needs of the A2CS program. Both vehicles will be Italianized, with 60% of activities developed in Italy.
Regarding the relationship with industry, the Defense Minister spoke of a “hard clash” with companies “that come to use journalists to convince the government to move faster.”
All the details.
THE PROGRAM CONTINUES BUT WITH COST CUTS
Thus, the program for the new armored vehicles destined for the Italian Army developed by the joint venture between Leonardo and Rheinmetall “is moving forward in a reasoned way,” but with a revision of costs and timelines.
“I regret there is a push coming from the industrial side,” explained the Defense Minister, but “I understand that there was some disturbance from the industrial side because the minister wanted a more concrete analysis and cut costs by 18%: I am happy to have done it because these are citizens’ money, but reasoning and delaying the program we did it because the costs seemed excessive.” Another reason for the delay is that “I would like the industrial return in Italy to be maximized.”
THE MINISTER’S REASSURANCES
At the same time, Crosetto reiterated that Defense has not stopped the project, but it is subject to a revision regarding quantities and supply schedule.
The minister emphasized that “nothing in our programs has been interrupted”: “The intention to have next-generation vehicles continues but we are reasoning on numbers and timing.”
The original program of the Leonardo-Rheinmetall joint venture for the Italian Army provided for the delivery by 2040 of 272 Panther tanks and 1,050 Lynx infantry fighting vehicles, for a total estimated value of about 23 billion euros.
THE CLASH WITH INDUSTRY
Continuing on the topic of land military vehicles, Crosetto also addressed the relationship with companies involved in the modernization programs of ground forces, openly speaking about the pressures received.
The Defense Minister spoke of a “hard clash” with companies “that come to use journalists to convince the government to move faster”: “saving public money on one hand and the idea of maximizing the return in Italy are two objectives that a Defense Minister must pursue.”
THE COMMENT FROM THE RID DIRECTOR
Meanwhile, the director of Rid, Pietro Batacchi, also commented on the program delays.
“The eternal Italian electoral campaign is heavily affecting the modernization of the heavy ground component of our Army,” observed Batacchi, adding that “The uncertainty about the Safe European funds, the failure to exit the European infringement procedure for excessive deficit, the hesitations due to the political conjuncture (from the referendum, to the rise of the Generalissimo… pacifist), etc., have in fact blocked the signing of the contract for the development and acquisition of the first examples of the new PANTHER-IT tank, the result of cooperation between Leonardo and Rheinmetall.”
The director of Rid recalled that “the signing was scheduled for February, then postponed to the end of May. Now we hope the good month will be September.” “Meanwhile, however, all this is slowing down the program, generating concern in the Rheinmetall partner and within Leonardo and Idv, who have already made significant investments and set their financial and industrial planning based on the expectation of contracting in the early months of the year,” Batacchi emphasized.
IMPACT ON THE INDUSTRIAL SUPPLY CHAIN
According to the expert, the postponement of the contract signing is producing effects on the industrial organization of the involved companies, which had already started investments and planned production activities.
Batacchi cites the case of “Leonardo’s La Spezia plant: a first-class plant and a true industrial excellence, doubled in size over the last 2-3 years, with many new young engineers and specialized technicians, a reactivated and remobilized supply chain, expanded in its scope of competencies, orders for strategic materials placed, with risks of losing delivery slots, and so on.”
In conclusion, the director of Rid highlights that “this situation is certainly not optimal from several points of view. International credibility, industrial and operational expectations, etc., against the backdrop of an increasingly complicated and competitive international scenario.”
