Renault Group will not turn itself into a defense company, as Europe’s car industry faces Chinese electric carmakers and the continent’s rush to rebuild military capacity.

That was the message from François Provost, CEO of Renault Group, in an interview with Bas Kurstjens of De Tijd and other media during last week’s Automotive News Europe Congress in Brussels.

Asked whether defense contracts could become a new future for one of Europe’s largest carmakers, Provost was categorical: “Renault will not become a defense company.”

Chorus drone project

The statement is striking because Renault has already taken its first concrete steps into the sector. The French group is involved in the Chorus drone project with Turgis Gaillard, with assembly planned at its Le Mans site. The Provost’s line is therefore not that Renault will stay away from defense, but that it will not let defense define the company.

“We can contribute to the efforts being made for defense,” Provost told De Tijd. “It is an opportunity, but our strategy will never depend on it.”

He added that Renault would not use public defense money simply “to fill unused factories”. Only in a real war economy, he suggested, could defense become a significant division for the group.

Not like other European carmakers

That position sets Renault apart from some European rivals. Volkswagen is under much greater pressure to find a new role for its Osnabrück plant, where T-Roc production is due to end by mid-2027, leaving 2,300 jobs in uncertainty.

VW has examined defense-related options for the site, while CEO Oliver Blume has presented defense as one possible lifeline for underused automotive capacity.

Mercedes-Benz is also moving more openly into defense-adjacent vehicles. It has agreed to work with Munich-based Tytan Technologies on vehicle-based counter-drone systems using the G-Class and Sprinter as platforms.

Unlike Renault, Mercedes already has a long tradition in special-purpose vehicles for security, rescue, and military use. Its defense activity remains small, but is increasingly described as a strategic growth field.

Protect Europe’s automotive value chain

The Provost’s emphasis is different. His main concern is not how to fill plants, but how to protect Europe’s automotive value chain. “We do not have overcapacity in our factories,” he said. That is why Renault does not need the kind of defensive move now being considered by other manufacturers, such as producing Chinese-branded cars in European plants.

The real danger, according to Provost, lies deeper in the supply chain. Car assembly accounts for only a small share of the value of a vehicle, he argues, while most of the value sits with suppliers, engineering, batteries, and components.

If Chinese brands assemble cars in Europe while continuing to import most key parts from their own ecosystems, European suppliers could still lose scale and relevance.

That is where the Provost’s view collides with Stellantis. The Franco-Italian group has chosen a much more pragmatic route through its Leapmotor partnership.

Stellantis and Leapmotor plan to build electric vehicles in Spain, including the Leapmotor B10 and a new Opel-branded electric SUV. For Stellantis, the deal helps fill underused capacity and speed up access to affordable EV technology. For Provost, such agreements only work for Europe if they also anchor more component sourcing and engineering locally.

Source parts in Europe

“I think the good way for Europe is really to set a deal with China based on this strategy,” Provost said separately in Brussels, arguing that Chinese carmakers should be encouraged to source parts in Europe, not merely assemble cars here.

In the De Tijd interview, he compared the idea with what China required from Western carmakers three decades ago, when market access came with local production and technology-sharing expectations.

At the same time, Renault is benefiting from a sudden acceleration in EV demand. The Provost said orders for electric vehicles are up sharply in countries such as France and Germany since the Iran war pushed up fuel prices.

“We’re currently exceeding the capacity of our suppliers because of the war in Iran,” he told Reuters, adding that Renault has “already revised our assumptions” for EV sales. In the De Tijd interview, he said private buyers, rather than fleet customers, are now driving the market, especially households replacing a second car.

The competitive context is shifting fast. Volkswagen, Stellantis, and Renault have jointly urged Brussels to adopt a simple “Made in Europe” framework, under which 70% of cars sold in the EU would carry 70% local value.

Their common message is that Europe needs affordable EVs, battery support,t and regulatory flexibility, but their strategies are not identical.

Renault wants to localize the value chain without opening its factories to Chinese brands. Stellantis is willing to co-produce with Leapmotor. Volkswagen is considering defense as a possible solution to plant underuse. Mercedes is turning special vehicles into a defensive opportunity.