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Why Is General Motors Partnering With Lockheed Martin on Defense?
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Key Takeaways
General Motors and Lockheed Martin signed an MOU to expand U.S. defense manufacturing capabilities.
GM Defense brings manufacturing expertise as the partnership targets faster, higher-rate production.
Lockheed Martin plans a $9B facility and supply network investment through 2030 to support capacity.
General Motors Company (GM - Free Report) has partnered with defense contractor Lockheed Martin to expand U.S. defense manufacturing capabilities, with the collaboration facilitated by the U.S. Department of Defense. The companies aim to increase production capacity for munitions and other defense products by improving production readiness, strengthening supply chains and leveraging advanced manufacturing and design technologies.
The partnership, currently governed by a memorandum of understanding, is in its early stages, with future contract opportunities yet to be defined. It will focus on high-rate manufacturing to increase the speed, scale and resilience of the U.S. defense industrial base.
Lockheed Martin plans to invest $9 billion through 2030 to modernize 20 facilities and strengthen its supply network. Separately, GM is investing $9 billion in capital expenditures and $7 billion in research and development across its business this year, though it has not disclosed investment plans for GM Defense.
Reestablished in 2017, GM Defense serves customers including the U.S. Army, the Secret Service and NASA, building on GM's history of manufacturing military vehicles during World War II. Per Bruce Brown, vice president of strategy at GM Defense, the collaboration combines the manufacturing expertise of both companies to strengthen the nation's defense industrial base.
The announcement comes as the Trump administration encourages greater domestic manufacturing and has held discussions with major automakers about supporting U.S. defense production.
GM’s Zacks Rank & Key Picks
General Motors currently has a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for GELHY’s 2026 sales and earnings implies year-over-year growth of 77.1% and 40.3%, respectively. The EPS estimate for 2026 and has improved 18 cents and 7 cents, respectively, over the past 30 days.
The Zacks Consensus Estimate for GTX’s 2026 sales and earnings implies year-over-year growth of 5.6% and 20.4%, respectively. The EPS estimate for 2026 has improved 14 cents over the past 60 days, while the EPS estimate for 2027 has improved 6 cents over the past 30 days.
The Zacks Consensus Estimate for PLOW’s 2026 sales and earnings implies year-over-year growth of 16.7% and 31.4%, respectively. The EPS estimate for 2026 and 2027 has improved 39 cents and 29 cents, respectively, over the past 60 days.
View the Zacks #1 Rank List
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Why Is General Motors Partnering With Lockheed Martin on Defense?
Key Takeaways
General Motors Company (GM - Free Report) has partnered with defense contractor Lockheed Martin to expand U.S. defense manufacturing capabilities, with the collaboration facilitated by the U.S. Department of Defense. The companies aim to increase production capacity for munitions and other defense products by improving production readiness, strengthening supply chains and leveraging advanced manufacturing and design technologies.
The partnership, currently governed by a memorandum of understanding, is in its early stages, with future contract opportunities yet to be defined. It will focus on high-rate manufacturing to increase the speed, scale and resilience of the U.S. defense industrial base.
Lockheed Martin plans to invest $9 billion through 2030 to modernize 20 facilities and strengthen its supply network. Separately, GM is investing $9 billion in capital expenditures and $7 billion in research and development across its business this year, though it has not disclosed investment plans for GM Defense.
Reestablished in 2017, GM Defense serves customers including the U.S. Army, the Secret Service and NASA, building on GM's history of manufacturing military vehicles during World War II. Per Bruce Brown, vice president of strategy at GM Defense, the collaboration combines the manufacturing expertise of both companies to strengthen the nation's defense industrial base.
The announcement comes as the Trump administration encourages greater domestic manufacturing and has held discussions with major automakers about supporting U.S. defense production.
GM’s Zacks Rank & Key Picks
General Motors currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited (GELHY - Free Report) , Garrett Motion Inc. (GTX - Free Report) and Douglas Dynamics, Inc. (PLOW - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GELHY’s 2026 sales and earnings implies year-over-year growth of 77.1% and 40.3%, respectively. The EPS estimate for 2026 and has improved 18 cents and 7 cents, respectively, over the past 30 days.
The Zacks Consensus Estimate for GTX’s 2026 sales and earnings implies year-over-year growth of 5.6% and 20.4%, respectively. The EPS estimate for 2026 has improved 14 cents over the past 60 days, while the EPS estimate for 2027 has improved 6 cents over the past 30 days.
The Zacks Consensus Estimate for PLOW’s 2026 sales and earnings implies year-over-year growth of 16.7% and 31.4%, respectively. The EPS estimate for 2026 and 2027 has improved 39 cents and 29 cents, respectively, over the past 60 days.