GM to Contribute to Emergency Stockpile
President Donald Trump recently utilized the Defense Production Act, a measure allowing the government to require manufacturing firms to produce specific goods during crises. The President has now inked the initial contract citing this act, enjoining General Motors, an automotive giant, to craft medical ventilators urgently needed to combat the COVID-19 outbreak.
A GM representative mentioned that full-fledged production is set to kickstart next week, with an initial shipment of 6,132 ventilators slated for delivery to the national stockpile by June 1. The ventilator assembly will continue through August, coming at a production expense of around $489.4 million. GM clarified that this cost strictly accounts for labor and materials, with the company not anticipating any profits from this venture. Following this announcement, GM’s stock received a minor increase of 1.8%.
In an official statement, GM expressed its commitment to collaborating with the administration to ensure that American innovation and manufacturing align with the nation’s needs throughout this global health crisis.
Prior to finalizing the agreement, President Trump publicly censured GM for supposedly pledging more ventilators at a higher cost than what was eventually delivered. Trump took to Twitter, criticizing GM’s performance, stating, “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’.”
