From pickups to idle plants: automakers seek lifeline from defence boom

Western automakers are looking to ride a defence spending boom to sell more vehicles and better use underemployed plants, but executives say military work won’t offset weaker car demand or tougher competition from China. Companies including Ford, General Motors and Jaguar Land Rover are bidding for defence contracts using modified pickup trucks and off-road vehicles they already produce, while others are selling spare capacity to defence manufacturers expanding output. Jefferies analyst Vanessa Jeffriess warned the financial impact will be limited as sales slow and rivals ramp up. GM expects defence revenue of $700 million this year, rising 30% annually, still under 1% of $185 billion group revenue in 2025.