It is to be developed and manufactured by KNDS (a holding company founded in 2015 by German arms producer KMW and the French defence firm Nexter Systems) and Rheinmetall, which joined the project in 2019.
Rheinmetall's addition to the MGCS did not go without tensions between Paris and Berlin, as development leadership of the various pillars of the program as well industrial production were supposed to be equally split between the two countries.
[6] According to Frank Haun, CEO of KNDS, various countries have shown interest in joining the MGCS, including Italy, Norway, Poland, Spain, Sweden and the United Kingdom.
[8] Negotiations between Krauss-Maffei Wegmann, Nexter and the German and French governments started in Summer 2014 over the amalgamation of the two companies that would eventually obtain the contract to produce the MGCS.
Presenting the project to French lawmakers in January 2015, the CEOs of both companies assumed that the new holding would boost production for both manufacturers by avoiding export restrictions, especially in Germany.
[9] In July 2015 the National Assembly voted in favour of a measure that permits the privatisation of state-owned defence companies, paving the way for KMW and Nexter to join forces.
Meanwhile, at the 2018 Eurosatory, KNDS unveiled the European Main Battle Tank (E-MBT), a hybrid combining the hull of a Leopard 2A7 with the lighter, two-man turret of a Leclerc.
[23][24] During June 2020 bilateral talks with his German counterpart, the Italian Undersecretary for Defence Giulio Calvisi said that the possibility of allowing Italy to participate in the MGCS programme had emerged.
[4] For KNDS' exhibition at Eurosatory 2018, the hull, engine and entire chassis of a Leopard 2A7 which can carry 68 tons were modified to host the lighter, more compact, autoloader-equipped turret of the Leclerc.
[32] According to Nexter's head of tracked and armour programmes, Francois Groshany, the benefit of the tank is the combination of the "very high capability" Leopard 2 chassis with the lighter Leclerc turret.