General Motors is rapidly expanding its defense unit, GM Defense, which is projected to generate nearly $700 million in revenue this year. CEO Mary Barra stated that the company is building a future business backlog and collaborating with major defense contractors like Lockheed Martin. "We're focusing our efforts on strengthening supply chain management, improving manufacturing readiness, and expanding production capacity in ways that serve the United States and its allies," Barra explained, aiming for GM Defense to become a more significant contributor to earnings.

Globally, GM's deliveries in the second quarter fell to approximately 1.43 million vehicles, a 7.2% decrease year-over-year. CFO Paul Jacobson attributed this to the discontinuation of certain models, a smaller EV market, and tight dealer inventory early in the year. However, Jacobson expressed optimism, noting that efforts to onshore production, launch new vehicles, and increase full-sized SUV capacity are expected to boost revenue, market share, and profitability by 2027.

GM is investing up to $1.5 billion this year to bring production back to the U.S. and enhance its software capabilities. This investment will increase U.S. production capacity to over 2 million units next year, according to Barra. "At the same time, our high-margin software and services revenues continue to grow rapidly, with 1 million new subscriptions expected this year, contributing to more than $3 billion in recognized revenue next year," she added.