With the ongoing war against Iran, the U.S. government turned to American manufacturers, including Ford and General Motors, to potentially increase weapons production.
This strategy is similar to the one used during World War II, when the government leveraged automotive production lines to increase production.
The Pentagon is reportedly looking to use personnel and factories to increase production of weapons and other defense projects, ensuring the U.S. maintains a strategic advantage.
Now, Ford CEO Jim Farley has confirmed that his company is in talks with the U.S. government about defense-related projects.
Pentagon Seeks to Expand Defense Production
FOX Business reported last month that the Pentagon was exploring ways to increase defense production to ensure the country always has a surplus of weapons at any given point in time. A Pentagon official said:
“The Department of War is committed to rapidly expanding the defense industrial base by leveraging all available commercial solutions and technologies to ensure our warfighters maintain a decisive advantage.
“The Department is aggressively pursuing and integrating the best of American innovation, wherever it resides, to deliver production at scale and drive resiliency across supply chains.”
The report adds that having a ready supply of weapons has become a priority for the U.S. government, considering the ongoing war with Iran and the war between Ukraine and Russia.
The military intends to increase production of munitions and tactical hardware, including “missiles and counter-drone technology.”
All companies in talks with defense officials were asked to identify challenges that stand in the way of taking on additional work related to defense projects, including contracting requirements and hindrances in the bidding process.
Defense officials also reportedly held discussions with GE Aerospace and vehicle and machinery manufacturer Oshkosh.
The latter said in a statement to FOX Business that it “brings the full strength of a global enterprise, combining scale, financial stability, and advanced, flexible manufacturing, to efficiently ramp production while delivering consistent quality and reliability for both commercial and military customers.”
“We are committed to regularly evaluating how our available capacity can meet the Department of War’s evolving needs, and we are proud to support national defense and the service members who rely on our capabilities and technologies.”
Jim Farley Opens Up About Defense-Related Talks With U.S. Government
Farley has acknowledged that his company is in talks with the U.S. government, but emphasized that they are still in early stages. Speaking during Ford’s Q1 2026 earnings call with investors, as reported by Ford Authority:
“What I’d be able to say at this point is two things. First of all, we are in early discussions, the U.S. government on some defense-related projects. We’re not going to go into details of those today. In addition, and I would say equally important is Ford’s role as an anchor customer on onshoring critical minerals and many other supply chain vulnerabilities we have in our country.”
Farley added that Ford’s supply chain was already catering to the government and revealed another way the company was aiding the country. He added:
“And I think you should expect Ford to play an outsized role in manufactured gray semiconductors, critical minerals like batteries and rare earths. And our supply chain is heavily engaged, not only with our government, but new companies that are starting to emerge in our country to onshore some of this capability. And I think maybe perhaps in the short term, that’s the biggest role Ford can play in helping our country.”