General Motors Co. (NYSE:GM) is said to be in negotiations with Lockheed Martin Corporation (NYSE:LMT) to manufacture parts for the defense contractor’s weaponry, according to a report published on Monday.
GM may manufacture widely used components to help Lockheed boost munitions production, though the exact parts it could produce are still being determined, the Wall Street Journal reported on Tuesday, citing sources close to the matter.
GM’s CEO, Mary Barra, has engaged in discussions with Trump administration officials about a larger military role for the automaker. GM, which re-entered the defense business nearly a decade ago with its GM Defense subsidiary, is exploring opportunities to expand its defense business and identify new revenue sources.
Ford Motor Company (NYSE:F) CEO Jim Farley has also stated that his company is in discussions with the U.S. government about military-related projects, as per the report.
General Motors and Lockheed Martin did not immediately respond to Benzinga‘s request for comments.
Defense Shortages Drive GM Move
The ongoing discussions between GM and Lockheed Martin come in the wake of the Pentagon’s concerns about the capacity of domestic weapons manufacturing. Due to the ongoing conflicts in Ukraine and Iran, there has been a significant decrease in the stocks of missiles and other crucial weaponry. The Trump administration and Pentagon officials have encouraged weapons manufacturers to accelerate production and have sought the participation of other manufacturers, including GM.
A GM–Lockheed partnership would mark a growing trend of automakers like Volkswagen AG (OTC:VWAGY) and Mercedes-Benz Group AG (OTC:MBGYY) entering the defense sector as declining global car sales leave manufacturing capacity underused. The move could also help the Pentagon tap into additional U.S. production capability for select programs.
Lockheed Expands Defense Production
Lockheed Martin, the supplier of Thaad missiles, F-35 jet fighters, and Black Hawk helicopters, has been working to expand its defense manufacturing capacity, as evidenced by its new facility in Troy, Alabama. This expansion is expected to nearly double the facility’s production space and create a significant number of new jobs, reflecting Lockheed Martin’s commitment to meeting the demand for munitions supporting America’s arsenal.
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 Benzinga editors.
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