General Motors Ordered to Build 30,000 Ventilators

Credit: Tim Matsui, Ashleigh Joplin/The Washington Post

GM has been tapped to add to the stockpile.

Last month, President Donald Trump officially invoked the Defense Production Act, which allows the government to order production companies to create specific supplies in the event of an emergency. Today, the President signed the first contract under this act, requesting automotive company General Motors to produce medical ventilators to aid in combating the COVID-19 pandemic.

According to a GM spokesperson, production will begin in earnest next week, and the first batch of 6,132 ventilators will be delivered to the national stockpile by June 1. Ventilator production is planned to continue until the end of August. The cost of production on the ventilators will be approximately $489.4 million. GM has clarified that that price is exclusively for the cost of labor and materials; the company will not be turning an actual profit on the contract. On the news of the order, GM’s stock received a modest boost of 1.8%.

Credit: GM

In a public statement, GM said that it is “dedicated to working with the administration to ensure American innovation and manufacturing meet the needs of the country during this global pandemic.”

Before the deal was actually struck, the President publicly criticized the automotive company for delivering fewer ventilators than it allegedly promised for a larger price. “As usual with ‘this’ General Motors, things just never seem to work out,” Trump tweeted. “They said they were going to give us 40,000 much needed Ventilators, ‘very quickly’. Now they are saying it will only be 6000, in late April, and they want top dollar. Always a mess with Mary B. Invoke ‘P’.”

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