General Motors (GM) might soon be building more than just cars and trucks. The automaker is reportedly in talks with defense giant Lockheed Martin (Lockheed Martin) to manufacture parts for the company's weaponry, according to a report published Tuesday.
The Wall Street Journal reported that GM could produce widely used components to help Lockheed boost munitions production, though the exact parts are still being determined. GM's CEO, Mary Barra, has been in discussions with Trump administration officials about taking on a larger military role for the automaker.
This isn't GM's first foray into defense. The company re-entered the defense business nearly a decade ago with its GM Defense subsidiary, and it's now looking to expand that business and find new revenue sources. Ford (Ford) CEO Jim Farley has also said his company is in discussions with the U.S. government about military-related projects.
Neither GM nor Lockheed immediately responded to requests for comment.
Why Now? Defense Shortages
The talks come as the Pentagon worries about the capacity of domestic weapons manufacturing. Ongoing conflicts in Ukraine and Iran have significantly depleted stocks of missiles and other crucial weaponry. The Trump administration and Pentagon officials have encouraged weapons manufacturers to accelerate production and have sought help from other manufacturers, including GM.
A GM-Lockheed partnership would also reflect a growing trend: automakers like Volkswagen (Volkswagen) and Mercedes-Benz (Mercedes-Benz) are entering the defense sector as declining global car sales leave manufacturing capacity underused. For the Pentagon, it's a way to tap into additional U.S. production capability for select programs.
Lockheed's Expanding Defense Production
Lockheed Martin, which supplies Thaad missiles, F-35 jet fighters, and Black Hawk helicopters, has been working to expand its own manufacturing capacity. The company recently opened a new facility in Troy, Alabama, that is expected to nearly double production space and create a significant number of new jobs.
On Monday, Lockheed announced a $514 million contract from the U.S. Space Force to build GPS IIIF Space Vehicles 23 and 24, expanding its total commitment under the program to 14 satellites.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by MarketDash editors.
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