GM, Lockheed to collaborate on defense projects

By Kalea Hall

DETROIT, June 16 (Reuters) - ‌General Motors ​and defense ​company Lockheed Martin are collaborating on projects to strengthen the U.S. manufacturing and defense industrial base, the companies said on Tuesday.

GM Defense, ‌the automaker's defense business unit, and Lockheed said the U.S. Department ⁠of Defense facilitated their partnership because of growing demand for additional production capacity.

The companies did not ‌identify specific projects in their ‌statement, but said they would focus on the key areas of improving production readiness, strengthening supply chains and boosting efficiency through advanced manufacturing and design.

GM ​Defense will look at using its laboratories and production facilities for the partnership, said Bruce Brown, its head of strategy. It has also held talks with ⁠defense contractor RTX, a source familiar with the matter said on Tuesday.

Earlier on Tuesday Bloomberg News said ​GM was in talks with RTX and L3Harris on helping the weapons makers boost production, with any tie-up expected to involve ​work similar to its Lockheed deal.

An L3Harris spokesperson ‌told Reuters the firm is engaging with companies both within the industry and outside in a bid to speed production.

In ⁠addition it will invest "billions to modernize and expand our solid rocket motor production facilities and investing heavily in our supply chain."

RTX declined to comment. GM did not immediately respond to ⁠requests for comment on the Bloomberg report.

GM is investing $9 billion in capital and $7 billion in research ​and development in its overall business this year, but has revealed its allocation to the GM Defense business.

Lockheed is investing $9 billion through 2030 to scale munitions production and upgrade facilities.

It was ‌too early for Lockheed to say what projects it would invest in with GM Defense, said Frank St. John, its ‌chief operating officer.

Crosstown rival Ford Motor has said several governments in Europe and North America ⁠have discussed with the company ‌how its products can support ​defense efforts.

(Reporting by Kalea Hall and Mike Stone; Additional reporting by Ananya Palyekar and Anusha Shah; Editing by Cynthia Osterman and ‌Clarence Fernandez)

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