GM vs. Ford: U.S. defense, energy sectors add to automakers' century-old rivalry - CNBC
General Motors and Ford are diversifying their business models by entering the defense contracting and energy storage sectors. Both companies are leveraging their manufacturing expertise to secure military vehicle contracts and capitalize on the growing demand for data center power storage.
Why it matters
This shift represents a strategic pivot for legacy automakers as they seek new revenue streams to offset losses in the electric vehicle market.
DETROIT — General Motors and Ford Motor have rivaled each other for more than a century in racing, vehicle sales and many other automobile-related activities.
But their latest battlegrounds have moved to actual battlefields and the U.S. energy grid.
Ford joined GM this year in seeking U.S. military contracts after the Trump administration approached U.S. companies about assisting the military with their expertise in mass manufacturing. The automakers' efforts so far are largely focused on military vehicles, but could grow with time.
Simultaneously, both companies are entering the energy storage system , or ESS, market amid an expected growing need related to rising consumer energy costs and data centers. Energy storage systems use a lot of the same underlying technology as electric vehicle batteries to store power for homes, businesses and even utilities.
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