Why Lockheed Martin is Partnering with General Motors

Lockheed Martin and General Motors's defence subsidiary GM Defence have announced a collaboration to bolster production across the US defence sector.

The companies will work under a Memorandum of Understanding (MoU) to "accelerate the delivery of critical capabilities".

US President Donald Trump recently invoked the Defence Production Act of 1950 to shore up production. 

General Motors has a long history in the defence sector; it was a producer of the M-16 rifle during the Vietnam war. However, this new agreement is a significant expansion to its defence production and builds on multiple automakers currently switching production from cars to defence equipment. 

Inside the partnership

Lockheed says the collaboration will focus on three areas: strengthening defence supply chains, advancing manufacturing and design capabilities and evaluating opportunities to expand production capacity through commercial manufacturing expertise and infrastructure.

Frank St. John, Chief Operating Officer at Lockheed Martin, says: “America's security depends not only on developing advanced technologies, but on our ability to produce them quickly, reliably and at scale.

“This collaboration brings together two leaders in American manufacturing and innovation to explore new ways to strengthen the defence industrial base, expand production capacity and accelerate delivery of critical capabilities for the United States and its allies.”

According to the Wall Street Journal, General Motors’s CEO Mary Barra has met with Trump Administration officials to discuss a larger military role for the carmaker.

The report added that under the agreement between the two companies, GM would manufacture parts for Lockheed to bolster munitions production, citing people familiar with the matter. 

Lockheed says the collaboration reflects growing demand for greater production capacity, supply chain resilience and manufacturing agility across the defence sector.

Lockheed increasing production

In January, Lockheed Martin and the US Department of War signed a framework designed to quadruple the production capacity of Terminal High Altitude Area defence interceptors and an additional framework to accelerate PAC‑3 Missile Segment Enhancement interceptor output.

Lockheed Martin is investing more than US$9bn through 2030 to scale munitions production and upgrade its facilities. 

The company is set to further expand its production capabilities in line with the current US administration’s goals and concerns. 

General Motors’s defence capabilities

Steve duMont, President of GM Defence, says: "Working together, GM Defence and Lockheed will further strengthen American manufacturing and national defence by driving greater speed, efficiency and innovation in the aerospace and defence sectors.

"Over the coming weeks, we will be working to identify initial projects to pursue together."

Historically, General Motors’s defence business has supported the US throughout multiple wars spanning World War I and II to Korea and Vietnam; supplying everything from artillery, machine guns, bazooka shells and anti-aircraft guns.

GM re-established its wholly-owned subsidiary defence and government-facing business, GM defence LLC, in 2017 to focus on three lines of operation: integrated vehicles, power and propulsion and mobility and autonomy. 

Its move to ramp up its defence business follows other carmakers, including Mercedes, Renault and Harbinger, who all recently announced moves into the defence sector. 

Earlier this year, Volkswagen was reportedly in talks with Rafael Advanced Defence Systems, one of Israel's main partners for its Iron Dome, to switch production from one of its manufacturing sites in Germany from cars to missile defence components. 

The Trump administration and munitions

It has been widely reported that US stockpiles of munitions have been depleted as a result of the US and Israel's war on Iran and the war in Ukraine. 

Reuters reported on June 10 that President Trump’s administration was set to meet with key defence contractors on accelerating production.

President Trump has recently invoked the Defence Production Act of 1950. The act grants the president broad authority to influence domestic industry.

President Trump wrote in the June 11 document: “I hereby find that conditions exist which may pose a direct threat to the national defence or its preparedness programs. 

“In particular, systemic constraints in the munitions industrial base, including limited production capacity, fragile supply chains, long-lead dependencies and related production bottlenecks, may impair the ability of the United States to produce, sustain and expand the availability of munitions, missiles and equipment required for the national defence.”

President Trump recently proposed an increased to the US defence budget to US$1.5tn for the year 2027.