America
GM and Lockheed Martin Partner for Defence Manufacturing Projects
General Motors has formed a new partnership with Lockheed Martin to bolster U.S. industrial and defense production capacity. The partnership, born from the U.S. Department of Defense, will be centered on production and supply chains manufacturing efficiency. GM Defense will apply the capabilities of any number of its facilities and laboratories to help with it; Lockheed Martin is still pouring money into expanded production capability. This news is being made against the background of defense firms looking to expand their production capacity as demand surges and the industry needs to keep up with it.
Key Highlights
- General Motors and Lockheed Martin announced a defence collaboration.
- Partnership facilitated by the U.S. Department of Defence.
- The companies will focus on production readiness in the context of supply chains and manufacturing efficiencies.
- Lockheed Martin is spending $9 billion through 2030, to ramp up and modernise production.
GM and Lockheed Martin form partnership focused on U.S. manufacturing, defence competitiveness.
The collaboration pairs GM, the automaker's military procurement subsidiary, with aerospace company Lockheed Martin as orders rise for added manufacturing diversity in the defence industry.
This partnership focuses on production and supply chains
The collaboration was enabled by the U.S. Department of Defence, the companies said. Neither company specified any particular projects, but said they would pursue enhancing production readiness as well as reinforcing supply chains and increasing efficiency through advanced manufacturing and design.
Bruce Brown, head of strategy at GM, told Automotive News that the company will explore the use of its labs and production facilities through the partnership. The announcement follows manufacturers and defence contractors exploring options to strengthen production.
GM Holds Additional Industry Discussions
GM Defence also has held related discussions involving RTX, according to a source. On Tuesday, it was also reported that GM was negotiating with RTX and L3Harris Technologies to assist in boosting weapons output, possibly similar to the Lockheed Martin arrangement.
The entire production chain needs to be scaled up, A spokesperson for L3Harris said. It is partnering with companies inside and outside the defence industry to speed up production. In addition, the company announced plans to spend billions of dollars to upgrade and expand its solid rocket motor production centres and purchase additional supplies.
Companies Are Still Investing In Production Capacity
This year GM is spending $9 billion in capital spending and $7 billion in research and development for its overall business, although the automaker hasn't shared how much will go to GM Defence.
Lockheed Martin stated it plans to spend $9 billion up to 2030 to ramp munitions production and expand facilities. It is too early to determine what projects specifically would be funded in the partnership with GM, Chief Operating Officer Frank St. John said Friday.
Separately, Ford Motor said multiple governments in Europe and North America had been in contact with the company about how its products may be able to help support defence efforts.
Source: Reuters
Follow Inspirepreneur Magazine for daily global business news.