Last week, GM announced a partnership with Ventec Life Systems to increase production of lifesaving ventilators by providing their “logistics, purchasing and manufacturing expertise.”
Fast forward to today and The New York Times is reporting the White House cancelled plans to reveal a joint venture between the two companies that would have allowed for the production of up to 80,000 ventilators.
Details are limited, but officials told the publication the Federal Emergency Management Agency (FEMA) needed more time to determine if the $1+ billion (£818,850,000 / €911,560,000) price tag was “prohibitive.” Sources also said “several hundred million dollars” were to be paid to GM upfront, so the company could retool a parts plant in Kokomo, Indiana to make ventilators.
Also Read: GM Partners With Ventec Life Systems To Increase Ventilator Production
Despite the hefty price tag, not that many ventilators would be available shortly after production begins. While GM and Ventec initially promised 20,000 ventilators would be available in “short order,” that number has reportedly been slashed to 7,500 and it appears even that figure is questionable.
Some officials have reportedly expressed concerns the government could end up ordering too many ventilators and wasting millions of dollars in the process. This idea was echoed by President Trump yesterday, who suggested New York Governor Andrew Cuomo’s request for at least 30,000 ventilators was non-sense.
As he told Fox New’s Sean Hannity, “You know, you go into major hospitals, sometimes, they’ll have two ventilators. And now all of a sudden they’re saying, ‘Can we order 30,000 ventilators?'”
Officials suggested the deal with GM and Ventec may still happen, but the government is reportedly looking at a number of other proposals.
Neither company would comment directly on the report, but Ventec’s chief strategy officer told the paper “Ventec and GM have been working at breakneck speed to leverage our collective expertise in ventilation and manufacturing to meet the needs of the country as quickly as possible and arm medical professionals with the number of ventilators needed to save lives.” Those sentiments were echoed by a GM spokesperson who said the project is moving very quickly and “there’s no issue with retooling.”