Romania has imposed a second penalty on Otokar under the Cobra II 4×4 Tactical Wheeled Light Armoured Vehicle programme, citing delays in interim milestones related to local production preparations. The development was disclosed through the Public Disclosure Platform (KAP), confirming a compensation claim of 230,217,479.41 Romanian Lei (approximately TRY 2.326 billion at the current exchange rate).
The company made the following statement via the Public Disclosure Platform;
“In our Company’s material event disclosure dated January 16, 2026, it was publicly announced that, within the scope of the 4×4 Tactical Wheeled Light Armored Vehicle procurement tender opened by C.N. Romtehnica S.A. (Romtehnica), a company of the Romanian Ministry of National Defence, and awarded in favor of our Company, a compensation claim amounting to 191,847,899.70 Romanian Lei had been submitted to our Company on the grounds that the interim milestones relating to local production preparations in Romania, had been submitted to our Company due to the delays and disputes experienced could negatively affect the continuation of the project and may give rise to additional compensation claims.
In this context, on February 13, 2026, Romtehnica submitted payment claims to our Company totaling 230,217,479.41 Romanian Lei (approximately 2,326 million TL at the current exchange rate), alleging that certain subsequent interim milestones in the ongoing local production preparations process were not fulfilled on time. Our Company anticipates paying the aforementioned amount when due within the first quarter of 2026, while reserving its legal rights. It is planned to file a lawsuit objecting this demand while continuing discussions between the parties.
The portion of these payment claims attributable to 2025 amounts to 85,265,733.11 Romanian Lei (approximately 862 million TL at the current exchange rate). This amount will be covered by the accruals totaling 93.792.306,42 Romanian Lei (923 million TL) recognized in our publicly disclosed annual financial statements, where it was accounted as deduction from the Company’s contractual entitlements for 2025. The portion attributable to 2026 amounts to 144,951,746.29 Romanian Lei (approximately 1,465 million TL at the current exchange rate), the balance that is not covered by the accruals already recorded in the account amounting to 136,425,172.99 Romanian Lei (approximately 1,403 million TL at the current exchange rate) is anticipated to be expensed through offsetting against the contractual entitlements relating to 2026.
While the delays and disputes experienced may negatively affect the continuation of the project and give rise to additional compensation claims, as noted in our previous disclosures, the Company continues its efforts to resolve the disputes and to perform its contractual obligations.
Developments regarding the matter will be shared with our investors through material event disclosures and/or our activity reports, depending on the significance of the matter.”
Between the first and second penalties, Otokar acquired the Romanian company Automecanica SA, with which it had previously established a joint venture. The acquisition has been interpreted as a move to accelerate localisation and secure direct control over production execution. At the same time, the wording of the KAP disclosure reflects both contractual tension and continued programme commitment, acknowledging risks while confirming ongoing engagement.
The most direct insight into Otokar’s current position came from an interview published by Anadolu Ajansı. Otokar General Manager Aykut Özüner responded to questions regarding the Romania contract and the status of ongoing production preparations.
Emphasising the broader strategic scope of the Automecanica acquisition, Özüner stated:
“With this acquisition, Otokar aims to become a defence industry company that manufactures within the European Union.”
He further highlighted the company’s longer-term European ambitions:
“While our primary customer is the Romanian Army, with this investment Otokar will become a strong candidate supplier within defence-focused programmes across Europe. With this strategic step, we aim to play a more active role in military procurement processes in Europe. We intend for Romania to become a strategic hub for Otokar’s European operations.”
While analysing Otokar’s acquisition of Automecanica SA, TurDef noted that the company had chosen, as a strategic objective, to become a permanent manufacturing player in the European defence industry rather than withdrawing, and it pointed out that EU SAFE-type funds and procurements were likely targets.
Addressing the penalties directly, Özüner said:
“As of today, we no longer have any delays or outstanding obligations regarding production preparations. Similar processes can occur in large international defence projects. While reserving our legal rights, we continue our constructive dialogue with our customer. Our decision to invest in Romania is the clearest indication of our commitment to the project.”
He added that production investments in Romania have been completed, with trial production expected to begin in the second quarter, followed by serial production.
Under the programme, 240 COBRA II vehicles have been delivered so far, with delivery of 276 vehicles under the first phase expected to be completed this month. Subsequent deliveries will continue from the Romanian production line, marking Otokar’s transition from export supplier to European-based manufacturer.