France's Renault, Thales Join Forces on Large-Scale Drone Munitions Production

By Mauro Orru

Carmaker Renault and aerospace-and-defense company Thales agreed to work together to make drone munitions at scale, a boost to the French defense industry as the North Atlantic Treaty Organization member seeks to shore up its production capabilities.

The companies said they would churn out Thales's short-range multi-environment loitering munitions, or Toutatis, equipped with interchangeable warheads that can be deployed by infantrymen, or from vehicles, air or naval carriers. Production could start as early as next year, with capacity of 1,000 units per month in the first year.

The announcement comes a day after the two companies said they were working on a prototype of a tactical vehicle for land forces, a partnership that shows willingness from a carmaker like Renault to join forces with another French group to bolster domestic defense capabilities.

Renault Chief Executive Francois Provost said the carmaker's industrial scale would help Thales mass-produce the Toutatis at speed and in a cost-effective manner, while Thales CEO Patrice Caine said the partnership marked a significant step in France's efforts to make its drone industry more sovereign and independent in a "war economy."

For Renault, engaging in munitions production represents an opportunity to tap an industry that has gained prominence since Russia's invasion of Ukraine in 2022 ushered in a spending bonanza from governments to rearm.

It also allows the group to further diversify its business. Renault and much of the auto sector have been wrestling with stiff competition from Chinese rivals as well as President Trump's tariffs in recent months.

For Thales, the partnership gives it an opportunity to expand production at scale when it comes to drone munitions. Modern warfare in Europe and the Middle East showed that nations under attack and those in the vicinity remain vulnerable to aerial threats from missiles and drones, injecting renewed impetus on governments to shore up their air defenses.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

June 16, 2026 10:44 ET (14:44 GMT)