RENK Group AG and KNDS Deutschland have extended a contract for HSWL 354 transmissions destined for the Leopard 2 main battle tank (MBT) and its family of derivative vehicles, the two companies announced on October 14, 2026, at the Association of the United States Army (AUSA) Annual Meeting in Washington, D.C. Valued at around €130 million, the extension also covers the TCS-354A transmission control unit and the G4MA11 gear selector, with deliveries scheduled to run from 2029 to 2032.
The order secures drivetrain supply for a growing Leopard 2A8 order book. According to KNDS, around 3,300 Leopard 2 tanks and family vehicles serve with 23 countries, and new-build Leopard 2A8 orders from NATO members have surged since 2023. The HSWL 354 has been at the heart of the Leopard 2’s mobility for more than four decades, and RENK began production of the 4,000th unit at its Augsburg plant on June 8, 2026, a transmission earmarked for a Bundeswehr Leopard 2A8. RENK Chief Executive Officer Alexander Sagel called the tank “the backbone of Western armed forces.”
HSWL 354 Leopard 2 Transmissions: Steering, Braking, and Control
The HSWL 354 is a hydromechanical shift, reversing, and steering transmission that packages the drive train, the steering system, and the full service and parking brake system into a single compact unit. RENK rates it for engine outputs of up to 1,300 kW and for tracked vehicles with typical combat weights of 50 to 70 tonnes, with four forward and four reverse speeds. In the Leopard 2 it is paired with the MTU MB 873 Ka-501 twin-turbocharged V12 diesel, rated at 1,100 kW (1,500 hp), in a powerpack that maintainers can exchange as one unit in the field.
RENK’s catalog for its HSWL family of tracked-vehicle transmissions, which includes the HSWL 354, describes a hydrostatic-hydrodynamic superimposed steering drive and a braking system integrated with a powerful retarder in the same housing. Without oil, the transmission weighs 2,385 kg.
Adding the TCS-354A and G4MA11 means KNDS is buying the complete electronically controlled shift chain, not only the gearbox. Neither company published specifications for the two components or disclosed the number of transmissions covered, the unit price, or the split between new tanks, family vehicles, and spares. The 2A8 adds the Trophy active protection system and enhanced turret roof protection while keeping the 1,100 kW powerpack of the Leopard 2A7V. RENK confirmed in June 2026 that it is developing a higher-performance evolution of the HSWL 354 for future Leopard 2 powerpacks, and in August 2025 it began developing the HSWL 406 for heavy tracked vehicles of 50 to over 70 tonnes.
How KNDS Is Scaling Leopard 2A8 Production Across Europe
KNDS Deutschland Chief Technology Officer Axel Scheibel described RENK as a strategic partner in the company’s production ramp-up, and the order book explains the urgency. Germany signed a framework contract in May 2023 for up to 123 Leopard 2A8s and called off 18 immediately; the Bundestag budget committee approved the remaining 105 in July 2024, with all 123 due by 2030. Norway has 54 on contract, the Netherlands 46 plus an option for six more, and Lithuania, the Czech Republic, Sweden, and Croatia 44 each. Croatia’s €1.48 billion purchase, signed in December 2025, is largely financed through the European Union’s Security Action for Europe (SAFE) loan instrument. Defense Minister Boris Pistorius said in November 2025 that Germany planned to order 75 more in 2026; whether that contract has been placed remains unconfirmed.
To absorb that volume, KNDS has spread hull fabrication and final assembly beyond Munich. Czech firm Tatra Defence is contracted to build 150 Leopard 2A8 hulls with provision for up to 300 more, 37 of Norway’s 54 tanks are to be built at a Levanger facility that KNDS opened with Norwegian partner RITEK in April 2026, and the first Leopard 2A8 assembled at a new plant in Kaunas, Lithuania, is expected in late 2028. The HSWL 354, by contrast, is produced at RENK’s Augsburg site.
The partnership is also financial. KNDS raised its shareholding in RENK to 15.84% in July 2025 under a settlement with investment firm Triton. When Germany’s Federal Cartel Office cleared KNDS in April 2025 to raise its stake to as much as 25% plus one vote, it concluded that RENK’s production capacity significantly exceeds KNDS’s demand for transmissions and suspension systems, and that RENK had no economic incentive to favor its shareholder over other integrators.
Analysis: The 2029 start date is the most revealing detail. The Bundeswehr’s 123 tanks are due by 2030 and export deliveries announced so far run between 2026 and 2031, so a transmission lot extending to 2032 points to KNDS reserving drivetrain capacity for orders not yet signed or disclosed, from a German follow-on buy to additional family vehicles. Hulls and final assembly are now spread across Europe; the HSWL 354 still comes from RENK’s Augsburg site. For NATO planners, the readiness of a 23-nation Leopard 2 user base rests heavily on one German supplier, and booking its capacity years ahead is the most direct hedge against delivery slippage.
The next markers are a German contract for the additional Leopard 2A8s, further export decisions, and details of the HSWL 354 successor. RENK and KNDS have not said whether that evolution will enter the 2029-2032 deliveries. Both companies are presenting their portfolios at AUSA 2026, which closes in Washington on October 14.