Update: President Trump used the Defense Production Act to force General Motors to make ventilators. In a short statement, Trump said he directed “Secretary of Health and Human Services to use any and all authority available under the Defense Production Act to require General Motors to accept, perform, and prioritize Federal contracts for ventilators.”
The President went on to say negotiations with GM had been “productive,” but the “fight against the virus is too urgent to allow the give-and-take of the contracting process to continue to run its normal course.” He then claimed “GM was wasting time,” although only a week has passed since the automaker announced they were partnering with Ventec.
Earlier story follows below
Less than 24 hours after President Trump suggested New York didn’t need 30,000 ventilators, he’s ripped into automakers for not making them immediately. His harshest criticism was lobbed at GM as he tweeted “As usual with ‘this’ General Motors, things just never seem to work out. They said they were going to give us 40,000 much needed ventilators, ‘very quickly.’ Now they are saying it will only be 6,000, in late April, and they want top dollar.”
He then said things are “always a mess with [GM CEO] Mary” Barra and she should “Invoke ‘P’”. He latter clarified that’s the Defense Production Act which is only something he can invoke and hasn’t done. [Update below]
Also Read: GM Partners With Ventec Life Systems To Increase Ventilator Production
As usual with “this” General Motors, things just never seem to work out. 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”.
— Donald J. Trump (@realDonaldTrump) March 27, 2020
General Motors MUST immediately open their stupidly abandoned Lordstown plant in Ohio, or some other plant, and START MAKING VENTILATORS, NOW!!!!!! FORD, GET GOING ON VENTILATORS, FAST!!!!!! @GeneralMotors @Ford
— Donald J. Trump (@realDonaldTrump) March 27, 2020
However, Trump’s Twitter tantrum wasn’t over as he stated: “General Motors MUST immediately open their stupidly abandoned Lordstown plant in Ohio, or some other plant, and START MAKING VENTILATORS, NOW!!!!!!” While the Lordstown plant is obviously out of the question, he also tweeted “FORD, GET GOING ON VENTILATORS, FAST!!!!!!”
General Motors doesn’t own the Lordstown plant anymore after selling to Lordstown Motors, which at the time, was hailed as “great news for Ohio” by President Trump.
GREAT NEWS FOR OHIO! Just spoke to Mary Barra, CEO of General Motors, who informed me that, subject to a UAW agreement etc., GM will be selling their beautiful Lordstown Plant to Workhorse, where they plan to build Electric Trucks. GM will also be spending $700,000,000 in Ohio…
— Donald J. Trump (@realDonaldTrump) May 8, 2019
Shortly after attacking GM on the ventilator deal, Trump tweeted “We have just purchased many ventilators from some wonderful companies. Names and numbers will be announced later today!”
GM Is Going To Make Ventilators And Masks
Despite the attack on GM, it appears the government has decided to buy ventilators from the automaker. In a press release made available moments ago, the company announced plans to build ventilators at their plant in Kokomo, Indiana with the assistance of Ventec Life Systems.
The ventilators could begin shipping as early as next month and the companies said they’re “working around the clock to meet the urgent need for more ventilators.” GM went on to say efforts to set up tooling and manufacturing capacity are already underway and they could eventually be able to build more than 10,000 ventilators monthly.
That won’t happen overnight, but GM noted they’ve been working with Ventec since March 20th. As part of this effort, they’ve created a plan for “immediate, scaled production of critical care ventilators” using a joint supply base with more than 700 individual parts that can be used to build up to 200,000 ventilators.
GM plant being prepared for mask production
Besides gearing up to build ventilators, GM will temporarily convert a plant in Warren, Michigan to build surgical masks. Production is slated to begin next week and within two weeks, the company should be able to make 50,000 masks daily. That number could eventually increase to 100,000 masks, but production will be “influenced by the availability of materials.”
The equipment to make masks was delivered this morning and GM said the “initiative was created, planned and approved in about 48 hours and involves GM’s traditional supply base as well as new partnerships specific to the medical device industry.”
The news comes shortly after reports surfaced that the White House cancelled an event to announce a joint venture between GM and Ventec which would see them build up to 80,000 ventilators. The New York Times reported 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.”
The same report also indicated GM was seeking “several hundred million dollars” upfront to retool the Kokomo plant. However, in today’s press release, GM said it is “donating its resources at cost.”
