How France’s factories are redrawing line between cars & war

Over the past decade, France’s industrial map has undergone a quiet but profound transformation, as the country’s struggling automotive sector increasingly pivots toward defence production amid geopolitical tension and economic uncertainty, according to an analysis by Le Monde.

In Savoie’s Arve Valley, Louis Pernat, president of the industrial group HBP, described to Le Monde what he called a “total paradigm shift.”

“Ten or 15 years ago, the defence sector seemed like an unpromising one. We would even, at times, be criticised for having even a small part of our business in this field, especially when some are, like us, deeply committed to corporate social responsibility [CSR] questions. People would say to us, 'That's not very ethical.' Even the banks viewed it unfavourably. This has completely changed since the war in Ukraine.”

Pernat also pointed to a linguistic and cultural shift: “We used to talk about armament, now it's defence.” His company’s exposure illustrates the broader restructuring of French industry. Automotive activity, once dominant, has fallen sharply, while defence-related production has expanded from marginal levels to a growing share of output.

As Le Monde reports, this shift has become especially visible in regions hit hard by industrial decline. The automotive sector, which lost a third of its workforce between 2010 and 2023, is increasingly viewed by workers and unions as vulnerable to outsourcing and electrification pressures. 

“Because it's one of the few sectors where you can tell yourself the work will never be outsourced,” Valentin Rodriguez, FO Métallurgie union leader, told Le Monde, adding, “France has understood it needs to remain sovereign in both skills and the supply chain.”

One of the most symbolic examples is Renault. The automaker, partially state-owned, has begun assembling drones at its Le Mans site for defence firm Turgis Gaillard.

“In the automotive sector, we know how to produce on a very large scale, with high levels of quality and robustness, on lines based in France, all while controlling the supply chain,” said François Marion, communications director at Valeo, another participant in France’s expanding drone ecosystem.

Defence expansion is not limited to aerospace. The Swedish group Scania is increasing military truck output in Angers, supplying more than 100 “Vampire” light 4×4 vehicles this year alone.

Yet Le Monde highlights that the transition is uneven. Former automotive suppliers describe defence contracts as more stable and fairly priced, but also more restrictive. A former plant manager said:

“It's also a completely different relationship between contractors and their subcontractors,” adding, “In defence, they pay a fair price for our work and our skills, whereas there's a glaring lack of solidarity within the automotive sector.”

Still, the shift is not universally embraced. At Renault-linked subcontractors, some workers have expressed reservations about defence production, even as others see it as job security. “We told our colleagues at Renault that if they didn't want the work, we'd be happy to pick up their contract,” said Raphaël Pellon of Walor Bordeaux.

For unions, the debate reflects a broader tension. Rodriguez acknowledged “quite intense debates” but defended the direction: “But we must be sovereign in defence.”

Despite optimism, Le Monde notes structural limits. Defence production is smaller in scale, heavily regulated, and dependent on state procurement. As one consultant put it: “The volumes promised by defence are nothing like those in the automotive” sector.

Still, the trend is accelerating. With tens of thousands of automotive jobs projected to disappear by 2035 and up to 100,000 defence jobs expected by 2030, France’s industrial future may increasingly be forged not on assembly lines for cars, but on those producing the equipment of modern warfare.

By Sabina Mammadli