Donald Trump’s Pentagon is pressuring American industry to do more than just build cars, engines and parts, somewhat abandoning the electric car mission temporarily.
Under Trump, defense officials allegedly began talking to major manufacturers about making weapons and military supplies instead.
Those conversations have reached the highest levels of corporate America. Top defense officials held discussions with General Motors (GM) CEO Mary Barra and Ford CEO Jim Farley, along with other industry leaders.
The Wall Street Journal described the talks as early and broad. Defense officials have asked whether American manufacturers could use workers, factory space and existing production systems to help make munitions and other equipment.
GE Aerospace and vehicle manufacturer Oshkosh also participated in the discussions. A Pentagon official allegedly said the department was “committed to rapidly expanding the defense industrial base by leveraging all available commercial solutions and technologies to ensure our warfighters maintain a decisive advantage.”
Defense officials are asking Detroit and other manufacturers to help replenish weapons stocks
the to request It comes at a difficult time for the US electric vehicle market. Electric vehicles accounted for 5.9% of US auto sales in the first quarter of 2026. This is down from 7.6% in the first quarter of 2025 and 7.2% in the first quarter of 2024. The high point came in the third quarter of 2025, when electric cars reached 10.6% of the market.
Going back to the first quarter of 2025, the market has generally reached record levels. However, Tesla’s peak in the first quarter came earlier, in the first quarter of 2023, not in 2025.
One thing, however, is that today’s market is still above Q1 levels from 2022, and is much stronger than it was in 2021. But that doesn’t change the recent slowdown. The leading models are still the Tesla Model Y and Tesla Model 3. Surprisingly in third place is the Toyota bZ, formerly called the bZ4X.
Next comes the Hyundai IONIQ 5 and Chevrolet Equinox EV. Then the field falls sharply. This weak demand gives the Pentagon another reason to test whether idle or underutilized manufacturing capacity can be redirected toward defense work.
Jim Farley supports Chinese partnerships while urging tighter rules at home
Automakers are also under pressure amid a messy debate over China. Just days after saying Chinese automakers should stay out of the United States, Jim Farley said Ford still wants deeper relationships with Chinese automakers. On Fox News Monday, Farley said: “We have to keep them out of our country.”
By Wednesday, while speaking to reporters about the reorganization at Ford, he had softened that line. He said Chinese companies are changing the industry with cheaper and more advanced vehicles and that Ford benefits from working with them.
“We value our Chinese partners, they help us stay agile and competitive in many markets around the world,” Farley said. “We will continue to expand these partnerships,” he added. He also said he had “no news” to announce. However, the links are there.
Ford has held discussions with Zhejiang Geely Holding Group about sharing manufacturing capacity in Europe. It also spoke with BYD about supplying batteries for gas-electric hybrid vehicles. In China, Ford is already working with Chongqing Changan Automobile and Jiangling Motors.
Earlier this year, Farley also told Trump administration officials that if Chinese automakers wanted to make cars in America, they should do so through joint ventures controlled by American automakers, consistent with a model China has imposed on Western auto companies for decades.
