Rheinmetall to acquire US vehicle specialist Loc Performance for $950 million
German defense firm Rheinmetall has agreed to purchase Michigan-based Loc Performance Products to bolster its manufacturing capabilities and competitive standing in the United States.
Düsseldorf-based Rheinmetall has reached an agreement to acquire all shares of Loc Performance Products, LLC, a vehicle engineering specialist headquartered in Plymouth, Michigan. The deal, valued at $950 million, marks a significant effort by the German group to deepen its industrial footprint within the U.S. defense market.
Loc Performance employs approximately 1,000 workers and specializes in power trains, suspension systems, and armored structures. By incorporating these capabilities, Rheinmetall aims to enhance its competitive position in pursuit of major U.S. Army programs, specifically the XM30 infantry fighting vehicle and the Common Tactical Truck (CTT) initiatives, which represent a combined market potential exceeding $60 billion.
Once regulatory approvals are secured, the acquisition will be integrated into American Rheinmetall Vehicles. The transaction is designed to streamline local supply chains and increase production capacity to meet the rigorous technical demands of the U.S. Department of Defense.