GM enters defense industry with Patriot missile parts production

General Motors has entered the defense industry by beginning production of missile components, as the US military turns to automakers to replenish munitions stocks depleted by the wars in Ukraine and the Middle East.

US defense contractor Lockheed Martin said Thursday (local time) that GM delivered the first batch of missile housing components for its PAC-3 MSE Patriot interceptor missile on Aug. 28. The two companies signed a formal contract on Aug. 6.

Lockheed Martin said GM completed production of the Patriot missile parts in 22 days — a process that typically takes several months. The specific size of the order and the scope of any future contracts were not disclosed.

The partnership stems from a Pentagon push to expand production. The Defense Department has asked Lockheed Martin to more than triple annual Patriot missile output to at least 2,000 units by the end of 2030.

Scaling up supply quickly has proved difficult, however, as existing suppliers are near capacity, many key components are made by hand, and production depends heavily on sole-source vendors such as Boeing. With Ukraine facing prolonged Russian air strikes and US missile stockpiles seriously depleted by the US-Iran war, the Defense Department has been pushing to bring automakers and their suppliers into the weapons production chain.

GM has also been working to expand its defense business. CEO Mary Barra mentioned the defense segment at a recent earnings call, saying the company expects $700 million in sales and a double-digit operating profit margin from the division this year.

As the global auto market struggles with a slowdown and intensifying competition, GM's openness to defense work is seen as part of a broader effort by automakers to find new revenue streams.