General Motors' Defense Division Up and Running, Hires Army Veteran as President
Last year, news broke that General Motors was getting back into the defense business. The automaker had a slick new military fuel-cell concept and was in the process of setting up GM Defense LLC in Washington, D.C.
It’s now one year later and the automaker has appointed retired Maj. Gen. John Charlton as the subsidiary’s new president. He will report to GM Defense CEO Charlie Freese, a 15-year GM veteran and fuel cell technology expert. The unit’s stated goal is to focus upon “helping GM better anticipate and react to the diverse needs of global aerospace and defense customers.” But it’s also bringing the automaker back into mil-spec work for the first time since 2003, when it sold everything it had to General Dynamics for a cool $1.1 billion.
According to Automotive News, Charlton spent a 34 years with the U.S. Army, which included three combat tours in Iraq and one in Afghanistan. He also held command positions at every level and various senior staff positions on the U.S. Joint Chiefs of Staff.
However, his final role in the Army’s Test and Evaluation Command will be the most useful for General Motors. Despite being flush with cash, the military is pretty choosy about where it spends its money. New designs have to be tested and vetted before any branch dumps its vast fortune into a new contract. Charlton will have inside knowledge of that process, as well as the types of things the military would be looking for.
From Automotive News:
GM Defense initially is expected to focus on military and aerospace applications for GM’s emerging fuel cell technologies, including a fuel cell-powered Chevrolet Colorado known as the ZH2 and the Silent Utility Rover Universal Superstructure platform.
In June, GM announced an exclusive deal with Liebherr-Aerospace of France to develop a hydrogen fuel cell-powered auxiliary power unit for aircraft applications. An auxiliary power unit typically powers an aircraft’s lighting, air conditioning, backup systems and other auxiliary functions.
There were also rumors that the automaker is in discussions to purchase AM General. However, it’s one of several companies believed to be vying for what looks to be a very expensive property.
While GM will continue to supply the military with engines and transmissions, the new defense arm is expected to sake things up by expanding into vehicle designs with alternative powertrains — as well as cyber security and autonomous vehicle technologies. “This new business structure will enhance GM’s productivity, agility and affordability in a very dynamic customer environment,” Freese said in 2017. “Our goal is to make it simpler and more seamless to do business with General Motors.”
GM Defense exists as part of the automaker’s Global Product Development arm, led by Mark Reuss, GM’s vice president of Global Product Development.
[Image: General Motors]
A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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You'd think that General Dynamics would have extracted a non-compete as part of their purchase from GM. Apparently not.
It does look like GM will either buy out AM general or do a joint venture with Navistar Defense. It's not out of the question, since GM and Navistar already are cooperating on the new Chevy 4500, 5500 and likely a 6500 series medium trucks.