Ford is actively engaging with North American and European governments, including NATO members, to supply vehicles for military use. The company is in early discussions to sell its F-Series, Ranger, and Super Duty commercial trucks, highlighting their existing robustness for challenging terrains. Ford emphasizes that utilizing its commercial, off-the-shelf solutions offers a significant advantage in terms of cost and development time compared to traditional, purpose-built military hardware, which can take years to develop and cost billions.
This move by Ford comes as its rival, GM, is also pursuing military contracts, specifically with the UK government to replace an aging fleet of Land Rovers. GM, through its Team LionStrike (a collaboration with BAE Systems and NP Aerospace), has proposed supplying Chevrolet Silverado pickups and GM Defense's Infantry Squad Vehicles. This contract is potentially worth up to £900 million, or about $1.2 billion, with a winner expected in October. Even Mercedes-Benz has expressed interest in this sector if it makes business sense.
Analysts like David Whiston of Morningstar view the defense business as a lucrative niche. While GM established GM Defense in 2017, Ford is now recognizing the revenue opportunity. Ford's spokesman, Richard Binhammer, indicated that the company is looking for partners to customize vehicles as needed and that governments are seeking common, off-the-shelf solutions. Ford has also been awarded a contract to build three prototype tactical vehicles for the U.S. Army, based on its F-Series Super Duty pickups, aiming for what could be its largest military contract since the 1950s.
