The President Donald Trump administration is reportedly in talks with General Motors Co. (NYSE:GM), Ford Motor Co. (NYSE:F) and other manufacturers to produce weapons and other military supplies amid wars in Iran and Ukraine.
A World War II Callback?
The Pentagon has approached GM CEO Mary Barra, as well as Ford CEO Jim Farley, among other top executives, about producing military supplies and weapons, according to a report by the Wall Street Journal on Wednesday, citing anonymous sources familiar with the talks.
The preliminary talks were also held with GE Aerospace and Oshkosh Corp (NYSE:OSK), the report said, with the discussions beginning before the war with Iran. Defense officials have touted shoring up domestic production of weapons and munitions as a matter of national security, the report said, while also asking manufacturers to identify barriers to defense production, the report said.
The talks come as officials became concerned about domestic weapons manufacturing capacity following the U.S. and North Atlantic Treaty Organization began supplying weapons to Ukraine following Russia’s 2022 invasion, the report said.
Automakers producing defense goods isn’t a novel concept, as car manufacturers produced military equipment during the Second World War, including aircraft, engines and large trucks.
Jim Farley’s Earlier Warning
Interestingly, Farley had earlier lamented the lack of skilled technicians at Ford, sharing that the lack of mechanics could become a self-defense issue if not addressed. Stressing the importance of shoring up production with skilled workers, the Ford CEO said that Alphabet Inc.‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google wouldn’t be able to make tanks and planes “if we ever get in a war.”
The CEO, in the past, had said that over 6,000 bays at Ford dealerships across the U.S. were empty because of a lack of skilled workers.
Trump’s $1.5 Trillion Budget Request
Trump’s proposed fiscal 2027 budget would raise defense spending by over 44%, while also introducing cuts to non-defense discretionary programmes by 10%. The budget outlines a $1.5 trillion in spending for defense, up from $1 trillon this year.
The request was heavily criticized by lawmakers, including President Joe Biden-era Transportation Secretary Pete Buttigieg, who said that the administration was prioritizing wars over domestic welfare.
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Image via Shutterstock/ Joshua Sukoff
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