Rheinmetall Sells Automotive Business for €350 Million

[Corporate Strategy] Rheinmetall has agreed to sell its automotive powertrain business to Aequita for €350 million, fully exiting the civilian components sector.

Core Development: Century-Old Automotive Business Officially Divested

Rheinmetall confirmed the sale of 100% of its Powertrain Division to Munich-based investment group Aequita. The transaction is expected to close in Q4 2026, pending regulatory approvals in multiple countries.

Key Figures: Reduced Valuation and Workforce Protections

The final price of €350 million is significantly below the initial expectation of €1 billion; the divestiture will result in approximately €200 million in non-cash impairment charges. The buyer has committed to retaining all 6,250 employees globally and pledged no layoffs at German sites for three years.

Strategic Rationale: Sharpening Focus on Defense Core

Following a surge in defense orders after the Russia-Ukraine conflict, the company is accelerating its transformation into a pure-play defense contractor, having already converted several factories to military production.