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Detroit Automakers Turn Back the Clock on the Arsenal of Democracy -- Investors Should Cheer
The Motley Fool·
General Motors and Ford are entering the defense business to diversify revenue and improve profit margins. GM Defense is expected to generate nearly $700 million in revenue this year with a projected 30%+ compound annual growth rate and 12-15% operating margins, significantly higher than traditional automotive margins. This strategic pivot aims to change investor perception of automakers as low-margin businesses.
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