GM and Lockheed team up to expand defense manufacturing
The companies said a Defense Department-facilitated agreement will focus on munitions and ways to increase U.S. production capacity.
By Daniel Okafor · Business Editor
2 min read
General Motors and Lockheed Martin have agreed to work together on defense manufacturing, with an early focus on munitions, the companies said Tuesday. The partnership adds one of the country’s largest automakers to efforts to increase defense output as the U.S. looks to expand production capacity.
Bruce Brown, vice president of strategy at GM Defense, said the U.S. Department of Defense helped arrange the agreement. CNBC reported that the White House has also held talks with Ford and GM about ways the automakers could provide more support to the defense industry.
The companies are operating under a memorandum of understanding, executives said on a call with reporters. They said the work remains in its early stages, and they have not yet defined what future contracts could look like.
Brown said GM can bring experience in engineering, digital development, supply-chain management and large-scale manufacturing to defense production. He said the country needs not only advanced technology, but also the ability to build and deliver it reliably.
Lockheed Chief Operating Officer Frank St. John said it was too soon to identify specific programs that Lockheed might pursue with GM Defense. He said the companies will examine three areas: production readiness and scalable manufacturing, stronger supply chains and manufacturing and design methods that could improve efficiency and speed deliveries.
Executives from both companies described the agreement as focused on “high-rate manufacturing” and additional production capacity. They said the partnership comes as the U.S. increases output of defense components.
St. John said Lockheed is investing $9 billion through 2030 to upgrade 20 facilities and supply bases. Brown said GM plans to spend $7 billion on research and development in the United States.
GM has a long history with military production, including building tanks during World War II. Its current GM Defense business was reestablished in 2017 and has grown into one of the automaker’s newer business segments, with customers that include the U.S. Army, the Secret Service and NASA, according to CNBC.
Brown said the collaboration is meant to increase speed, scale and resilience in the defense industrial base by pairing two companies with large manufacturing operations. The companies did not announce financial terms for the agreement.
The announcement comes as President Donald Trump has pressed for more U.S. manufacturing and reshoring, CNBC reported. The outlet also reported that American defense stockpiles have declined because of the wars in Ukraine and Iran.
This story draws on original reporting from CNBC.