The acquisition is expected to strengthen Rheinmetall’s ties with the U.S. military and position the company to target major orders, including the XM30 mechanized infantry combat vehicle contract, valued at around $45 billion. The XM30 is set to replace the M2 Bradley, a key vehicle used by U.S. forces to transport and support infantry troops.
Loc Performance’s Role in Rheinmetall’s Growth
Founded in 1971 and based in Michigan, Loc Performance specializes in manufacturing drivetrains, suspensions, and armor for military vehicles. Its products are also utilized in the agricultural, mining, locomotive, and oil and gas sectors, making the company a versatile addition to Rheinmetall’s portfolio.
If the acquisition is approved, Rheinmetall’s U.S. unit, American Rheinmetall Vehicles, will gain access to Loc Performance’s 1.7 million square feet of modern manufacturing space, with the capacity to expand further. This acquisition not only adds significant manufacturing capabilities but also supports Rheinmetall’s bid for other large-scale projects, such as the U.S. Army’s common tactical truck program, which could be worth up to $16 billion.
Rheinmetall Buys Loc Performance : Impact of Geopolitical Shifts
The deal comes amid heightened geopolitical uncertainty, driven by events such as Russia’s invasion of Ukraine. These developments have led to increased defense spending in Europe, including a recent announcement by the German government to raise its defense budget by €1.2 billion ($1.32 billion) to €53.2 billion in 2025.
