General Motors (GM) is in talks with Lockheed Martin to produce weapons components for the defense contractor, according to people familiar with the matter cited by The Wall Street Journal. The two sides are still discussing which specific parts GM could supply — the plan is to produce versatile components that could be used across multiple weapon systems, helping Lockheed Martin increase ammunition production capacity. The deal has not been finalized, and the specific terms of the arrangement could still change; neither company has commented on the matter.
The talks come as the wars in Ukraine and the U.S. conflict with Iran continue to deplete American weapons stockpiles, pushing the Pentagon to pressure non-traditional suppliers for production support. The Trump administration’s proposed $1.5 trillion defense budget includes tens of billions of dollars earmarked specifically for ammunition and drone manufacturing, providing policy impetus for such partnerships. This trend is spreading across the auto industry: Volkswagen is reportedly discussing the possibility of producing parts for the “Iron Dome” system at its German plants, Mercedes-Benz has expressed interest in participating in European defense production, and Ford is in separate talks with the U.S. government about supplying military vehicles. GM already has a subsidiary, GM Defense, and a deal here would represent a significant expansion of its defense business.