This April, France and Germany took a pivotal step in advancing the Main Ground Combat System (MGCS) program with the legal incorporation of the “MGCS Project Company GmbH,” a new company responsible for the implementation of the program’s next phase.

The Franco-German program, which launched in 2017, aims to replace Germany’s Leopard 2 and France’s Leclerc main battle tanks (MBTs) by the year 2040. The objective is not only to produce a successor but also to deliver a multi-platform ground combat system.

From a strategic perspective, the establishment of the “MGCS Project Company GmbH” marks a renewed effort by two of Europe’s leading defense powers to pursue next-generation, sovereign land systems independent of external suppliers.

Although the MGCS program was outlined earlier this year, the legal formation of the joint company marks a significant step from planning to implementation. The company was formed on the basis of the approval by the German Federal Cartel Office, KNDS Deutschland, KNDS France, Rheinmetall Landsysteme, and Thales, and will be headquartered in Germany.

In a joint press release issued by KNDS, Rheinmetall, and Thales—a week after the company’s legal incorporation in Cologne—the partners emphasized the importance of this milestone for the MGCS project. They outlined the new company’s future responsibility for advancing the next phase of the program as the industrial prime contractor and, in particular, consolidating the “concept and the main technological pillars” of the system.

The eight pillars of the MGCS program include: chassis and automated navigation; cannon, turret, and ammunition; C4; simulation environment; sensor technology; protection and uncrewed vehicle defense; secondary armament; and support, logistics, and infrastructure. The MGCS design, which is not yet finalized, is expected to feature either a Nexter 140mm or Rheinmetall 130mm smoothbore gun, equipped with an automatic loader that enables the three-person crew to operate from within the protected hull.

The establishment of the joint company marks a clear commitment from the participating nations and industry partners to transition from concept to operational capability. The participating companies each provide complementary capabilities, with KNDS Deutschland’s (formerly Krauss-Maffei Wegmann) extensive experience in heavy armor and vehicle design; KNDS France’s (formerly Nexter) expertise in turret systems, weaponry, and vehicle subsystems; Rheinmetall Landsysteme’s advanced capabilities in firepower, protection, and mobility; and Thales’s proficiency in optronics, command-and-control systems, and secure digital communications.

Together, the four companies will collaborate on the design, development, and eventual production of the MGCS system, each holding an equal share, in order to streamline coordination and avoid the challenges of past multinational programs by centralizing coordination within a unified entity. This represents a broader shift in approach for multilateral defense cooperation, emphasizing industrial leadership, centralized management, and efficient execution, rather than the traditional attitude of national contracts and fragmented responsibilities.

As the program transitions into its next phase, the focus now turns to delivering demonstrators and refining the core technologies that will shape Europe’s next-generation ground combat systems.