BOULOGNE-BILLANCOURT (dpa-AFX) - Renault Group (RNT.L) has teamed up with Thales to create a new military vehicle, marking the automaker's push into the defense arena as European countries ramp up military spending due to rising geopolitical tensions.
On Monday, the two companies announced they'll be showcasing a prototype dubbed the '4 TROOP' at the Eurosatory defense exhibition near Paris. Renault mentioned it could be ready to take on production orders as soon as 2027. Investors are responding positively, with Renault's shares jumping about 4.5 percent in early trading.
This joint venture blends Renault's manufacturing skills with Thales' secure communications and defense tech to produce a versatile vehicle that can be made quickly and affordably.
Company representatives noted that how many units get produced will rely on customer interest and that they won't need to overhaul Renault's existing factories too much. The final details for the vehicle, including whether there will be an electric version, are still under review.
This partnership comes at a time when European governments are speeding up defense spending following Russia's invasion of Ukraine and shifting U.S. foreign policy under President Trump.
Defense contractors across Europe are increasingly looking to car manufacturers like Renault to help boost their production capabilities and meet the growing demand.
Renault shared that this hybrid four-wheel-drive vehicle is meant for tasks like, surveillance, troop coordination, and drone operations. The company is also broadening its defense initiatives with other projects, such as working on military drones in collaboration with French drone maker Turgis Gaillard.
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