Otokar Expands European Production With Automecanica Acquisition for Cobra II Program

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Executive Summary:
Otokar has completed its acquisition of Romanian manufacturer Automecanica, securing a local production base for the Cobra II armored vehicle program. The move supports Romania’s military modernization effort and strengthens defense manufacturing capacity on NATO’s eastern flank.

Otokar Completes Automecanica Acquisition To Expand Cobra II Production

The Otokar Cobra II Romania program has entered a new phase after Turkish defense company Otokar completed its acquisition of Romanian vehicle manufacturer Automecanica. The transaction clears the way for large scale local production of Cobra II 4×4 armored vehicles in Romania under one of Eastern Europe’s largest recent land systems procurement programs.

Romanian authorities approved Otokar’s purchase of approximately 96.77% of Automecanica’s shares in a deal valued at around €85 million. The acquisition gives Otokar direct control of the Mediaș production facility that will manufacture the majority of Romania’s future Cobra II fleet.

The development marks a significant milestone for both Otokar and Romania’s defense industrial base, transforming the Turkish manufacturer from an exporter into a defense producer with manufacturing operations inside the European Union.

Major Contract Drives Local Manufacturing

The acquisition is closely tied to Romania’s contract for 1,059 Cobra II armored vehicles, signed in late 2024 and valued at approximately €857 million. Under the agreement, the first batch of vehicles is produced in Türkiye, while the majority will be assembled and manufactured in Romania.

According to Otokar, more than 270 Cobra II vehicles have already been delivered from Turkish production lines to the Romanian Armed Forces. The remaining vehicles are scheduled to be produced locally at the Mediaș facility.

The Cobra II platform is available in multiple mission variants, including armored personnel carrier, anti-tank vehicle, mortar carrier, command and control vehicle, reconnaissance platform, and medical evacuation configuration. This flexibility was a key factor in Romania’s procurement strategy as it seeks to modernize its tactical vehicle fleet.

First Romanian-Built Cobra II Already Unveiled

A major indicator of the program’s progress came during the Black Sea Defense & Aerospace (BSDA) 2026 exhibition in Bucharest, where Otokar displayed the first Cobra II produced in Romania. The vehicle rolled off the production line at the Mediaș facility ahead of the planned start of serial production.

Otokar stated that full assembly operations are scheduled to begin during 2026, supported by technology transfer, workforce training, and local industrial integration efforts. The facility is equipped to perform the complete production cycle, including metal fabrication, welding, painting, assembly, and testing.

The Mediaș plant covers approximately 140,000 square meters and employs more than 250 workers and technical staff. The site has been upgraded to meet NATO production standards required for serial armored vehicle manufacturing.

Why The Acquisition Matters

Beyond vehicle deliveries, the acquisition reflects a broader trend across Europe toward localized defense production and supply chain resilience.

For Romania, local Cobra II production supports domestic industrial development, workforce growth, and long term sustainment capabilities. Producing vehicles within the country reduces dependence on external suppliers while ensuring maintenance and future upgrades can be conducted locally.

For Otokar, the deal provides a permanent manufacturing footprint inside the European Union at a time when European governments are increasing defense spending and seeking closer industrial cooperation among NATO members. The company has also indicated that Romania could serve as a strategic hub for managing future European defense programs.

The move aligns with wider NATO efforts to strengthen defense production capacity along the alliance’s eastern flank, where concerns over regional security and military readiness continue to drive procurement and modernization programs.

Strategic Impact For NATO’s Eastern Flank

The Cobra II production initiative highlights how defense contracts increasingly combine procurement with industrial participation requirements. Rather than simply importing military equipment, Romania is securing manufacturing expertise, technical know how, and long term production capabilities.

As local assembly ramps up, the program is expected to become one of the most significant armored vehicle manufacturing efforts currently underway in Eastern Europe. With more than 1,000 vehicles planned, the Cobra II fleet will play a central role in enhancing the mobility and protection of Romanian ground forces while reinforcing NATO’s regional defense posture.