Key insights
- The Pentagon is in talks with automakers and manufacturers to increase weapons production, potentially boosting revenues for companies like GM, Ford, GE Aerospace and Oshkosh. This initiative aims to address depleted stocks due to the wars in Ukraine and Iran and could lead to increased government spending in the defense sector.
The Trump administration wants automakers and other American manufacturers to play a larger role in weapons production, reminiscent of a practice used during World War II.
Senior defense officials have held talks about producing weapons and other military supplies with the top executives of several companies, including Mary Barra of General Motors and Jim Farley of Ford Motor, according to people familiar with the discussions.
The Pentagon is interested in enlisting the companies to use their personnel and factory capacity to increase production of munitions and other equipment as the wars in Ukraine and Iran deplete stocks.
The talks were preliminary and wide-ranging, the people said. Defense officials said American manufacturers might be needed to backstop traditional defense companies and asked whether the companies could rapidly shift to defense work.
GE Aerospace and the vehicle and machinery maker Oshkosh were among the companies involved in the talks with defense officials.
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