GM to Produce Patriot Missile Parts as U.S. Faces Critical Arms Shortage

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General Motors has entered the missile business.

The automaker is supplying parts for Lockheed Martin's Patriot missiles, the defense contractor said Thursday-a potential lift to America's munitions supplies depleted by the conflicts in Ukraine and the Middle East.

Lockheed, which faces Pentagon demands to sharply boost munitions production, said GM delivered an initial batch of missile-housing components for PAC-3 MSE interceptors in August.

Lockheed didn't disclose details about the order size or scope of future work.

Pentagon officials are working to enlist other manufacturers, including automakers and their suppliers, to team with weapons makers to replenish military supplies. GM and Lockheed were in talks about the automaker producing munitions parts, The Wall Street Journal reported earlier this year.

GM is working to expand its defense business, a small but growing unit. Chief Executive Mary Barra touted the division this summer in a call with analysts, saying she anticipated $700 million in defense revenue this year and double-digit margins.

GM and other automakers are seeking new revenue streams in a tough global auto market. More so than its rivals, GM has been open to defense work.

Lockheed has spent the past year rushing to assemble new suppliers for its Patriot interceptor, a high-end missile capable of knocking down a range of airborne attacks. Dwindling Patriot stockpiles have left Ukraine dangerously exposed to Russian missile barrages for months, while the U.S. war with Iran has severely depleted American inventories.

The Pentagon in January ordered the U.S. contractor to more than triple its Patriot output to more than 2,000 missiles a year by the end of 2030. The effort has taxed the company's supply chain, which covers a network of capacity-constrained subcontractors that are hard-pressed to surge their own output on short notice.

The most advanced Patriot missile costs more than $4 million apiece and takes more than two years to reach its military customers. Many key parts are largely handmade and come from single-source suppliers like Boeing, which makes the missile's advanced seeker.

Lockheed said GM managed to deliver the components, which typically take months to produce, in three weeks.

GM said it hopes to continue leveraging its capabilities for defense work, but didn't specify any future projects.

 

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