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Ford Motor Company and General Motors Partner with Defense and Energy Sectors to Diversify Revenue Streams

Ford Motor Company and General Motors are expanding into the defense and energy storage markets to diversify their operations beyond traditional vehicle sales. The administration announced that U.S. companies could assist the military with their manufacturing expertise, prompting Ford Motor Company and General Motors to seek military contracts. General Motors has already secured a U.S. Army contract to build infantry squad vehicles, which could exceed $1 billion depending on congressional appropriations. Simultaneously, both automakers are entering the energy storage system market. Ford Motor Company plans to spend $2 billion to launch an energy business, including converting a battery factory in Kentucky to produce storage units by late 2027. General Motors is currently producing battery cells for its partner LG Energy Solution to meet storage demands. In the defense sector, Ford Motor Company has partnered with General Dynamics Land Systems and Ricardo to bid on the United Kingdom's Light Mobility Vehicle program. This initiative aims to replace aging military fleets with a commercial derivative of the Ford Ranger pickup. Both companies are leveraging their manufacturing scale to provide reliable, commercial-off-the-shelf platforms for military and utility needs.

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