GM and Ford Take their Century-Old Rivalry to the Battlefield and the Power Grid

General Motors (GM) and Ford Motor Company, long-time competitors in the automotive industry, are now entering the defense and energy storage sectors. The companies were approached by the Trump administration to utilize their mass manufacturing capabilities for military contracts. GM has a head start in this area, with a backlog of contracts potentially worth over $1 billion.

GM anticipates its defense revenue to reach nearly $700 million by 2026, with positive earnings expected in the segment. Ford is also exploring the energy storage market, targeting 20 gigawatt-hours of production capacity backed by a five-year agreement with EDF Power Solutions North America. Both companies see potential in leveraging their EV-related manufacturing capacity to offset losses from their automotive divisions, but they face significant challenges in turning these new ventures into profitable businesses.