Detroit Automakers Turn Back the Clock on the Arsenal of Democracy -- Investors Should Cheer
The move to go after more incremental revenue through the defense business is encouraging, but there's more for investors to cheer about.
Two of Detroit's most iconic automakers, Ford Motor Company and General Motors, are challenging the perception that the automotive industry is plagued by low margins and high costs. The two companies are diversifying their business portfolios by venturing into new sectors, including Ford's battery energy storage systems and General Motors' subscription-based services for OnStar and Super Cruise. Both automakers are also returning to their roots, providing defense equipment to the U.S. military.
General Motors is currently supplying Patriot missile parts to Lockheed Martin, demonstrating the company's growing significance to investors. The story of Ford and General Motors' wartime contributions is often overlooked, but it is worth noting that both companies halted civilian car manufacturing during World War II to produce a wide range of military equipment, from airplane engines to machine guns and tank components.
Ford produced thousands of jeeps, heavy-duty military trucks, and even completed B-24 Liberator bombers, while General Motors converted over 100 plants and factories to manufacture a variety of weaponry, vehicles, and aircraft.
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