A shocking news has come to light in the world of automobile sector. According to the Wall Street Journal report, senior US Pentagon defense officials are in direct contact with General Motors (GM) CEO Mary Barra and Ford Motor CEO Jim Farley.
The purpose of the talks is to involve the factories of both the companies in the production of arms, ammunition and military supplies. This is the first time since World War II (WWII) that America's two largest auto companies can completely turn to arms manufacturing.
Why was the Trump administration forced to take this step?
The ongoing conflicts in Iran and Ukraine have rapidly depleted American defense stocks. The demand for ammunition, missiles and military vehicles has increased so much that traditional defense contractors (companies like Lockheed Martin, Boeing) are not able to supply alone. The Trump administration believes that it is necessary to expand the American manufacturing base. By taking advantage of the auto industry's mass production capacity, huge factories, supply chain and scaling expertise, production can be increased manifold.
Can Ford and GM really make weapons?
The answer is absolutely yes. Both the companies have done this before and their manufacturing capacity is still unmatched in the world. Ford factories already supply military vehicle parts, while GM has a division called GM Defense, which makes infantry squad vehicles.
Automation, robotics and just-in-time production systems are already present in their factories, which is perfect for large-scale manufacturing of weapons. If necessary, the civilian car line can be temporarily stopped and a weapon line can be deployed. Just like it was done in WWII.
This is not happening for the first time
During World War II, Ford and GM played an important role in making America the 'Arsenal of Democracy'. Ford built the world's largest factory complex at the Willow Run plant in Michigan, where the B-24 Liberator bomber was produced at the rate of one plane an hour. From 1942 to 1945, Ford built 8,685 new B-24 bombers, more than half of total B-24 production. At that time passenger car production was completely stopped.
GM contributed even more. The company produced more than 850,000 military trucks, 38,000 tanks and tank destroyers, 1.9 million machine guns, 110 million artillery shells and aircraft engines. GM had become the world's largest military contractor at that time, supplying war material worth $123 billion (many times more in today's value). From 1942 to 1945, none of the factories of either company could make civilian cars. Everything was for the war effort.
US auto industry will become 'war factory'!
Reminiscent of WWII, this initiative shows that the American auto industry is strong not only on the road but also on the battlefield. It will be important to keep an eye on further developments. Is this just talk or will the actual production begin? The answer to this question is yet to be found. If the deal is finalized, the American auto industry could once again become a 'war factory'.