Germany Might Scuttle French Vehicle Deal

Ties between France and Germany have become tense over doubts that Berlin will allow French industry to deliver on two vehicle deals to Saudi Arabia, raising questions over the viability of European defense cooperation, political sources said.
The problem: French industry needs Germany to authorize its Mercedes Unimog chassis for use with Nexter’s Aravis armored vehicle and the Multi Purpose Combat Vehicle (MPCV) from MBDA and the Lohr group, both under export contracts to Saudi Arabia, political sources said.
As problems emerged, and on advice from a German defense official, the heads of the French Senate and National Assembly defense committees, Jean-Louis Carrère and Patricia Adam, sent a letter to the head of the Bundestag defense committee, Susanne Kastner, asking for help on delivering on the Saudi deals Dec. 19.
But the high level parliamentary letter seems to have failed.
Kastner’s reply landed here Jan. 8, saying the Bundestag committee has no oversight of arms exports, which are the federal government’s responsibility, a French parliamentary official said. In addition, German deputies have tabled motions calling for timely, detailed information on arms exports, the source said.
“Relations are under strain,” a second French parliamentary official said.
Arms sales to Saudi Arabia generate political controversy in Germany because of human rights concerns. Krauss-Maffei Wegmann, however, is reportedly in talks to sell 30 Dingo armored vehicles and the Leopard 2 heavy tank to Riyadh.
The French Foreign Ministry, meanwhile, on Dec. 8 condemned the decapitation in Saudi Arabia of Mohamed Kheir Hussain Darwish, as part of Paris’ universal campaign against capital punishment. The Foreign Ministry noted on its website that Saudi Arabia executed 76 people in 2012.
For French industry, at stake are Saudi orders for 347 vehicles, with 279 Aravis units, including 15 in an ambulance version, and 68 MPCV air defense systems, armed with Mistral 2 missiles, business daily Les Echos reported.

Because the German government had not given clearances, Mercedes missed deliveries for Nexter on Oct. 15 and Lohr on Sept. 15, the French parliamentary letter said.
“Manufacturing has been disrupted, which carries a cost,” said Robert Lohr, chairman of the privately owned company. Lohr said he is optimistic clearance will be given, as the matter is still going through the procedure.
Lohr, based in Strasbourg, eastern France, integrates the Unimog chassis, a Rheinmetall turret and MBDA missiles on the MPCV.