PARIS – France is playing close attention to the sale of Renault Trucks Defense, a divestment seen as key for industrial consolidation, said Defense Minister Jean-Yves Le Drian.
"We're very vigilant on this file," he told Nov. 24 journalists at Innovation Forum, a technology showcase for small companies organized by the Direction Générale de l'Armement procurement office. "This is an important subject for France."
Volvo, a Swedish truck maker, said Nov. 4 the workers' councils would be consulted on a planned disposal of the Volvo Group Governmental Sales business. That military vehicles unit, mainly composed of RTD, accounts for some 1.5 percent of Volvo's total sales and employs 1,300 staff.
Whichever company buys RTD will have to work closely with Nexter, a key partner in the French Army's Scorpion modernization program, an industry executive said.
Nexter is seen as a potential buyer in view of its position as leading domestic supplier of land weapons.
Thales will have a look at RTD but the former is an electronic-systems specialist rather than a vehicle builder, so a key factor is whether there is any added value in an acquisition, a second industry executive said.
RTD will supply the motor and driveline, Nexter the chassis, and Thales the systems and communications for the Griffon multirole troop carrier and Jaguar combat vehicle, the two main vehicles in the Scorpion program.
RTD and Nexter held talks in 2011 for a merger but failed to reach a deal as there was then lack of clarity on French procurement plans and state ownership of the latter. RTD went on to buy in 2012 the family-owned Panhard armored vehicle maker.
Thales holds at least 20 percent of the Scorpion program and will pitch its Australian Bushmaster in a tender for a 10-ton light multirole vehicle to replace the Véhicule Blindé Léger scout car. Nexter and RTD also plan to compete in the competition with rival offers.
RTD in 2012 had a target of annual sales of €700 million by 2015, compared with €250 million in 2011. The company posted 2015 sales of €500 million.
"I will see that this Volvo sale will not have a detrimental effect on our interests," Le Drian said Nov. 10 in the lower house National Assembly. "Today I am thinking of the possibility of strengthening our French industry by this means," Agence France-Presse reported.
