Market Chatter: General Motors, Ford in Talks With Pentagon to Boost Defense Manufacturing

MT Newswires Live04-16 16:50

General Motors (GM) and Ford (F) are among several companies that have held discussions with senior US defense officials about supporting increased weapons and military supplies production, the Wall Street Journal reported late Wednesday, citing people familiar with the matter.

The talks involve potentially using manufacturing capacity and workers to produce munitions and other equipment to increase US stockpiles that have been depleted by ongoing conflicts, according to the report.

Officials also engaged GE Aerospace (GE) and Oshkosh (OSK) about expanding the defense industrial base and supplementing traditional defense contractors, the report said.

The discussions are described as preliminary, with the Pentagon seeking to assess whether manufacturers can shift production to defense manufacturing needs, according to the Wall Street Journal.

Companies have not committed to specific actions, and the scope and timing of any potential shift remain uncertain, according to the report.

Pentagon did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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