The Trump administration's Defense Department is sounding out the U.S. auto industry on whether it can temporarily put off electric vehicle production plans and increase output of weapons and military supplies.

Cryptopolitan, a blockchain media outlet, reported on April 16 that senior Defense Department officials held related discussions with executives at major automakers, including General Motors CEO Mary Barra and Ford CEO Jim Farley.

The discussions are at an early stage, but the scope is broad. The Defense Department is looking at whether automakers can use their workforce, factory space and existing production systems to make munitions and other military equipment. The talks also included GE Aerospace and vehicle maker Oshkosh. A Defense Department official said it would use all available commercial solutions and technology to rapidly expand the defense industrial base, and said it would ensure warfighters maintain a decisive advantage.

The outreach comes as the U.S. EV market has slowed. EVs accounted for 5.9 percent of U.S. auto sales in the first quarter of 2026. That was lower than 7.6 percent in the first quarter of 2025 and 7.2 percent in the first quarter of 2024. The EV share peaked at 10.6 percent in the third quarter of 2025 and has fallen since. The top-selling models were still the Tesla Model Y and Tesla Model 3, with the Toyota bZ ranked third. The Hyundai Ioniq 5 and Chevrolet Equinox EV followed.

This demand slowdown is behind the Defense Department's review of whether auto production capacity can be shifted. As EV demand has weakened more than expected, some production facilities are more likely to sit idle or run at low rates, and the Defense Department is effectively testing whether that can be used to replenish weapons inventories.

A controversy over Ford's cooperation with China also overlapped with the same period. Farley recently said U.S. entry by Chinese automakers should be blocked, then days later expressed a willingness to expand cooperation with Chinese companies. He said on Fox News, "They should be kept out of the United States," but later, while explaining a Ford reorganisation, he said Chinese companies were changing the industry with cheaper and more advanced vehicles.

Farley also made clear the benefits Ford gains from its ties with Chinese companies. He said, "We value our Chinese partners," and said they help Ford stay competitive in various global markets.

Ford has been discussing sharing production capacity in Europe with Zhejiang Geely Holding Group, and has consulted with BYD on supplying batteries for gasoline-electric hybrid vehicles. In China, it already has partnerships with Changan Automobile and Jiangling Motors. Earlier this year, Farley also conveyed to Trump administration officials his view that Chinese automakers should adopt a joint-venture model controlled by U.S. automakers if they want to produce vehicles in the United States.

As a result, the U.S. manufacturing industry is facing three lines of pressure at once: slowing EV demand, calls to expand defense production, and a reset of cooperation with China. It has not yet been decided how much the Defense Department will shift auto-plant labour and equipment into actual military production, but it has become clear that discussions are accelerating on binding the U.S. manufacturing base back around defense production.