The US President, Donald Trump has invoked the Defense Production Act which will compel General Motors (GM) to make ventilators that are needed to treat patients with COVID-19.
This Defense Production Act forces companies to make products for national defense. The Act has its origins from the US-Korean war era.
Trump had previously said GM was “wasting time” and action was needed to save lives. In a statement, The White House said the order was put in place to prevent any further delay in negotiations.
It has stated:
“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. GM was wasting time. Today’s action will help ensure the quick production of ventilators that will save American lives.”
The order comes as a result of a lack of progress in negotiations between GM, Ventec and the US government. The negotiations hit a brick wall over internal concerns due to price and timeline regarding an earlier agreement to make the ventilators.
Trump himself had criticised GM in a tweet, urging them to start the productions of the ventilators.
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
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Trump had also criticised GM chief executive, Mary Barra. He said things were “always a mess” with her leading the car manufacturer.
Why so much fuss about ventilators?
GM had been working with Ventec to build ventilators in its auto plant in Kokomo, Indiana. The AP reports that GM had plans to use its plant in Warren, Indiana to make the much-needed surgical masks.
The COVID-19 pandemic which is forcing most of the world to lock down affects the ability of anyone infected to breathe, thus the need for ventilators to assist patients.
The US is also experiencing an unprecedented shortage of surgical masks. Health care workers need surgical masks to combat the virus without getting infected themselves.
The US has recorded about 104,000 cases of the coronavirus with about 1,700 deaths.
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