French automaker Renault announced on June 16 that it has reached an agreement with Thales, Europe’s largest combat systems manufacturer, to form a joint venture to industrialize the mass production of the Toutatis loitering munition (i.e., suicide drone). The joint venture is expected to begin production as early as 2027, with plans to gradually increase monthly capacity to 1,000 units starting in the first year. Renault CEO François Provost said the drones will be manufactured in France, although the specific production site has yet to be selected. This marks the second cooperation announcement between the two companies this week — a day earlier, they jointly unveiled the new 4 TROOP tactical vehicle integrating Thales systems, which incorporates drones, advanced sensors, hybrid secure communications, and AI-assisted decision-making. Additionally, Renault disclosed that it is collaborating with domestic aviation defense contractor Tourgjaya to mass-produce multi-purpose drones.
This move is the latest example of a wave of traditional European automakers shifting toward defense production. Volkswagen has been exploring defense operations at its Osnabrück plant, Mercedes-Benz is working with Munich-based Tytan to develop mobile drone defense systems, and Stellantis also said this month that it is holding discussions on defense matters. Analysts point out that the Russia-Ukraine war has triggered a surge in European defense demand, and the widespread adoption of drones on the battlefield has lowered the barrier to mass-producing low-cost weapons. Meanwhile, European automakers, whose electrification efforts have faltered, are now accelerating a return to their century-old arms-manufacturing roots, driven by governments’ military expansion needs — Renault produced the world’s first tank with a rotating turret, the FT-17, during World War I, and was once a leading global aircraft engine manufacturer.