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[BUSINESS] · Spain, France, Germany · 3 sources

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Seat explores drone production for defense sector

Seat, a subsidiary of the Volkswagen Group, is negotiating with Spanish technology group Aggity to produce both civilian and military drones at its Martorell plant near Barcelona. The project aims to combine the automaker's industrial capacity with Aggity's technological expertise.

The initiative is currently undergoing feasibility assessments and depends on securing public funding, potentially through Spain's Special Modernization Program (PEM) for Defense. If successful, the project would involve creating a dedicated production line adapted for aeronautical manufacturing.

Seat joins a growing trend of European automakers, including Renault, Mercedes, and Ford, seeking to diversify revenue streams and utilize excess production capacity by entering the defense industry. While Renault is partnering with Turgis Gaillard to produce drones for the French military, and Mercedes is adapting vehicles to serve as anti-drone platforms, experts note that transitioning to defense manufacturing requires meeting much stricter security and regulatory standards and carries risks of economic friction with China.

Entities

Aggity · Mercedes-Benz · Renault · SEAT · Volkswagen Group