Automakers Turn Pickup Trucks and Idle Factories into Defence Contracts Amid Spending Surge
Ford, General Motors and Jaguar Land Rover are adapting existing pickups and off-road models and selling unused plants to capture a share of rising Western defence spending, though analysts say the revenue boost will be modest.
Confronted with slowing vehicle demand and fierce competition from Chinese rivals, leading carmakers are seeking diversification by marketing military-grade versions of models they already produce. Ford, General Motors and Jaguar Land Rover have entered bids for a £900 million UK Ministry of Defence order for 3,000 adapted trucks, using the Ranger, Silverado and Defender platforms. Simultaneously, Stellantis intends to sell an idle Canadian plant to armoured-vehicle maker Roshel, and Volkswagen has agreed to transfer its Osnabrueck facility to Israel’s Aurelius Capital and the Lower Saxony state for a Rafael Advanced Defense Systems project.
Analysts note that while these moves exploit existing scale and supply chains, projected defence revenues—GM’s $700 million this year, rising to about $1.5 billion by 2029—would still represent less than 1 % of total automotive sales. Suppliers such as Valeo and Forvia see higher margins in military contracts, but overall the sector’s contribution to automakers’ core business remains limited.
Why it matters
It reveals how car makers are trying to offset weak sales by entering defence, yet the financial upside remains small.
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