Analysis-From pickups to idle plants: automakers seek lifeline from defence boom

Western automakers are capitalizing on a surge in defence spending as a means to sell more vehicles and utilize underemployed factories, though executives assert that military work will not compensate for dwindling car sales and mounting Chinese competition. Ford, General Motors, and Jaguar Land Rover are vying for military contracts by modifying existing pickup trucks and off-road vehicles for military use, while others are selling underutilized plants to defense manufacturers expanding capacity.

Analysts warn that the prospects for significantly raising revenue remain modest, citing slowing demand and fierce competition from Chinese rivals, as automakers battle to present investors with diversification efforts.