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Renault switches to a war economy: details of its reorientation towards armaments

Renault switches to a war economy: details of its reorientation towards armaments

On Sunday evening, June 8, Renault confirmed a project that could change everything. To diversify, the brand entered into discussions with the Ministry of Defense to produce drones for Ukraine, which is under attack from Russia. The Ministry of the Armed Forces would be in charge of the project, and Renault would only be able to respond to its requests without being proactive, but the demand would be there.

By launching the production of combat drones, Renault would mark its return to the military industry, a first since the Second World War. 85 years ago, the car manufacturer delivered R35 tanks to face the German Panzers during the Battle of France, from May to June 1940.

To produce drones, Renault is reportedly partnering with a French SME, whose name is not yet known. Minister Sébastien Lecornu announced the news in an interview on LCI, stating that a partnership "completely unprecedented where a large company producing French cars [...] will join forces with a French defense SME to equip production lines in Ukraine to be capable of producing drones."

An article published by Les Echos recalled that Renault executives were already sharing their interest in diversifying into the military in 2022. At that time, in front of analysts, they reported that "the lines were blurring between the industries.". A very attractive situation for the brand, which must find a way to compensate for the fragility of the automotive market, whether in sales of new cars of all kinds, the regulatory difficulties of hybrid cars, and the lack of interest in electric cars.

As a further diversification, Renault is also considering the production of a humanoid robot, like Tesla with Optimus. The objective is purely industrial, and takes the form of a minority stake in a French startup called Wandercraft, specializing in robotics. In a press release published on June 6, the French car manufacturer stated that "this investment is accompanied by a partnership agreement aimed at developing a family of new-generation robots, […] intended primarily for Renault Group production operations."

Drones: the colossal needs of the Ukrainian army

To return to the production of armed drones, Renault's production should be located "a few dozen or hundreds of kilometers from the front", detailed an article from Franceinfo this weekend, which linked the manufacturer's name after Sébastien Lecornu's statements. The diamond brand confirmed this on Sunday evening. Drone production should also benefit the French Army, heralding a large-scale project that would require a significant portion of the manufacturer's resources. By 2025, the Ukrainian Army plans to use more than 4.5 million drones. With the recent "Spider's Web" operation on June 1st, the Ukrainian Army gained attention and acclaim. At the time of its execution, it became the largest operation of its kind conducted against military infrastructure on Russian territory. With the coordination of numerous drones, Ukraine managed to hit more than 40 Russian military aircraft, including 34% of the bombers carrying cruise missiles. The total damage is estimated at $7 billion.

Source: Franceinfo

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