Saab CEO: Europe must rebuild deterrence to face unpredictable Russia

Published 25/04/2025, 10:56
Saab CEO: Europe must rebuild deterrence to face unpredictable Russia

Investing.com -- The ongoing conflict in Ukraine has prompted European governments to increase their orders for military equipment and set higher objectives for defense spending.

Sweden, the domestic market for Saab, has recently committed to allocating 3.5% of its gross domestic product (GDP) towards defense by 2030. Additionally, the possibility of the U.S. reducing its military presence in Europe has instigated a sense of urgency among European policymakers.

Saab, known for its Gripen fighter jets, long-range missiles, air defense systems, and submarines, is well-positioned to capitalize on the increasing defense spending across Europe.

Micael Johansson, President and Chief Executive of Saab, shared with investors that Europe is undergoing a "wake-up" and is attempting to expedite the process of determining the continent’s necessary military capabilities. However, he noted that these conversations are not progressing very quickly.

Johansson stated that more specific plans for the increased defense funding won’t be unveiled until the fall season at the earliest. He emphasized that Europe still has progress to make before it establishes its own independent capabilities and regains the deterrence level required to confront unpredictable eastern neighbors, a reference to Russia.

In response to these developments, Saab is focusing its efforts and resources on boosting production in Europe, while concurrently enhancing its capabilities in the United States. To support these initiatives, the company has hired over 80 individuals in the first quarter.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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