"World War II model" reappears! The Pentagon negotiates with American auto giants to "switch production to military supplies" to make up for ammunition shortages.

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The Trump administration is pushing U.S. automakers and other large industrial companies to expand weapons production to replenish quickly depleted ammunition stocks caused by global geopolitical conflicts, a move that harks back to the wartime defense production model of World War II.

According to media reports citing informed sources, senior officials of the U.S. Department of Defense have already held preliminary, wide-ranging consultations with several corporate executives, including General Motors CEO Mary Barra and Ford CEO Jim Farley. The Pentagon hopes to leverage these companies’ personnel reserves and factory capacity to support traditional defense contractors, and has explored the feasibility of quickly shifting to defense business.

This policy trend may directly affect the business structure and investment logic of U.S. industrial sectors. With the Pentagon proposing a record-breaking $1.5 trillion budget request in modern history, non-traditional defense companies are expected to obtain more high-value orders in ammunition and drone manufacturing, opening new sources of revenue for large manufacturers.

Relevant negotiations started before the outbreak of the Iran war. U.S. Secretary of Defense Pete Hegseth recently made it clear that military manufacturing should be put on a “wartime footing,” to ensure the U.S. military can maintain rapid supply of tactical hardware and ammunition under the pressure of multiple conflicts.

Removing Bid Barriers and Absorbing Diverse Production Capacity

In negotiations with manufacturing company executives, Department of Defense officials categorized increasing weapons output as a national security issue. According to media reports, as the Pentagon seeks to strengthen domestic manufacturing capabilities, officials not only asked what help companies can offer, but also requested executives to clearly point out the obstacles faced in undertaking extra defense work, covering everything from contract requirements to resistance in the bidding process.

Besides General Motors and Ford, GE Aerospace and vehicle and machinery manufacturer Oshkosh also participated in negotiations with Department of Defense officials. Logan Jones, Chief Growth Officer of Oshkosh’s transportation division, stated that after Hegseth called on companies to increase output, the company began talks with the Pentagon in November, focusing on how to introduce relevant capacity aligned with the company’s core abilities. Currently, although Oshkosh produces tactical troop transport vehicles for the U.S. military and its allies, the vast majority of its $10.5 billion revenue still comes from non-defense fields.

A Pentagon official stated that the Department of Defense is committed to utilizing all available commercial solutions and technology to rapidly expand the defense industrial base, ensuring the military maintains a decisive advantage.

Geopolitical Conflict Intensifies Ammunition Consumption

Since the outbreak of the Russia-Ukraine conflict in 2022, Washington and its NATO allies have transferred large quantities of weapons to Ukraine, and U.S. lawmakers and the Pentagon have become increasingly worried about domestic weapons manufacturing capacity. The recent Iran conflict has caused huge depletion of U.S. ammunition stocks, further highlighting the military’s urgent need for more commercial partners.

To rapidly expand the supply scale of ammunition and tactical hardware such as missiles and anti-drone technology, the Pentagon is seeking financial support. Its recently submitted $1.5 trillion budget request is not only the largest budget in the department’s modern history, but also expressly calls for major investment in ammunition and drone manufacturing.

There is precedent for converting domestic civilian manufacturing to military use. During World War II, Detroit’s automakers suspended car production and instead mass-produced bombers, aircraft engines, and trucks. The Trump administration previously made a similar call to U.S. auto manufacturers; in the early stages of the COVID pandemic, General Motors and Ford worked with medical device manufacturers to produce tens of thousands of ventilators.

Currently, most military production is still handled by a handful of traditional contractors. Although many large U.S. manufacturers in non-traditional defense fields already hold Pentagon contracts, these contracts are usually limited in scope and amount, often restricted to niche research or specific products.

However, auto giants are gradually deepening their involvement in the defense sector. General Motors already has a defense subsidiary responsible for producing light infantry squad vehicles based on the Chevrolet Colorado pickup. Although this project and other related initiatives currently account for only a small portion of total revenue and capacity, they represent a growing income stream. The company is expected to become a strong contender for the U.S. military’s larger infantry squad vehicle that will replace the Humvee, a new truck that, besides transporting troops, will also serve as a mobile power station and command base.

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