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Saturday, Jul 04, 2020

Donald Trump forces GM to make ventilators by invoking Defence Production Act

Donald Trump forces GM to make ventilators by invoking Defence Production Act

US president complained car manufacturer was ‘wasting time’ and move would ensure quick production to ‘save American lives’. Act is designed for wartime use to commandeer private business to manufacture for defence needs

US President Donald Trump issued a federal order on Friday to force General Motors to manufacture ventilators, as supplies of the crucial hospital equipment grow short and coronavirus infections mount across the country.

Trump invoked the rarely used Defence Production Act to order GM to speed up its commitment to make ventilators in one of its vehicle plants after delays in negotiations.

The act, designed for use in wartime to commandeer private business to manufacture for defence needs, will allow the White House to require GM “accept, perform, and prioritise federal contracts for ventilators”, Trump said in a statement.

“Our negotiations with GM regarding its ability to supply ventilators have been productive, but our fight against the virus is too urgent to allow the give-and-take of the contracting process to continue to run its normal course,” Trump said.


“GM was wasting time. Today’s action will help ensure the quick production of ventilators that will save American lives.”
Earlier in the day Trump demanded in a tweet that both GM and rival Ford move quickly on fabricating ventilators, essential to help seriously ill coronavirus patients breathe.

GM quickly answered back that it had a deal with medical equipment maker Ventec Life Systems to build the critical care equipment in its Kokomo, Indiana, plant, and would likely be able to begin shipping some next month.

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