Europe's defence push offers hope for France's struggling car suppliers

Business and Finance Business and Finance

Thu, March 20, 2025

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Europe's defence push offers hope for France's struggling car suppliers

^{Published on 2025-03-20 10:00:53 - Reuters}

A bid by French munitions maker Europlasma for a former Renault foundry is being closely watched by struggling auto suppliers, eager to tap a surge in defence spending as demand from traditional car making shrinks.

The article from Reuters discusses how Europe's push to enhance its defense capabilities is providing a glimmer of hope for France's struggling automotive suppliers. As the automotive industry faces challenges like the shift to electric vehicles and reduced car production, companies like Forvia, a major car parts supplier, are diversifying into the defense sector. Forvia, for instance, has been producing parts for military vehicles, including the French army's Griffon and Jaguar armored vehicles, which has helped to offset some of the downturn in the civilian automotive market. This pivot to defense is part of a broader trend where European defense budgets are increasing due to geopolitical tensions, particularly with Russia, leading to a demand for military hardware. This shift not only aids in maintaining employment and revenue for these suppliers but also aligns with European efforts to bolster its defense industry, potentially reducing reliance on foreign military equipment. However, the transition isn't without challenges, as these companies must adapt their production lines and workforce skills to meet military specifications.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/aerospace-defense/europes-defence-push-offers-hope-frances-struggling-car-suppliers-2025-03-20/ ]

N@N

Europe's defence push offers hope for France's struggling car suppliers