GM vs. Ford: The 100-Year Rivalry Moves to Defense and Energy

Two of America's biggest carmakers are looking for new ways to make money — and it has nothing to do with selling cars.

General Motors (GM) and Ford have competed against each other for over 100 years in racing and vehicle sales. Now their rivalry is heading into two surprising new areas: defense (military) and energy storage.

Why the change? Both companies bet big on all-electric vehicles (EVs) — cars powered only by batteries. But demand didn't grow as expected, and they lost billions of dollars on those efforts. Now they're stuck with expensive battery factories they don't fully need, so they're finding new uses for them.

Energy storage systems (ESS) are one solution. These are giant batteries that store electricity for homes, businesses, and even power companies. They use the same technology as EV batteries. The market is expected to explode:

• $668.7 billion in size in 2024
• Projected to reach $5.12 trillion by 2034

This growth is driven partly by rising electricity costs and the huge power needs of data centers (large buildings full of computers that run the internet and AI).

What each company is doing:

• Ford plans to spend $2 billion to launch an energy business, converting a Kentucky factory to make storage units by late 2027.
• GM is developing next-generation batteries and partnering with startups to move deeper into energy storage.

Ford's energy plans are also seen as key to fixing its money-losing EV division, which expects $4 billion in losses in 2026 before breaking even (making enough to cover its costs) by 2029.

On the defense side, both companies are now chasing U.S. military contracts after the government asked manufacturers to help boost weapons production. GM is years ahead of Ford here, focusing mainly on military vehicles.

The bottom line: Analysts say these new businesses won't replace car sales anytime soon, but they could help both companies diversify (spread out their sources of income) as U.S. car sales slow down. As one expert put it, it won't "move the needle massively," but it can definitely help.

This is an AI-generated summary. Read the original article at: https://www.cnbc.com/2026/09/05/gm-ford-defense-energy.html