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GM ventilator effort goes haywire with Trump slamming automaker CEO

GM ventilator effort goes haywire with Trump slamming automaker CEO
Autos
General Motors and ventilator maker Ventec Life Systems Inc. had much of what they needed in place to ramp up production of breathing machines that would help coronavirus patients survive and recover.

They were just waiting on the Trump administration to place orders and cut checks.

And then, just as frustration was mounting within the largest U.S. carmaker and its partner over the federal government finalizing the details, President Donald Trump went on the attack Friday.

He accused the company of moving too slowly and charging too much, specifically criticizing Chief Executive Officer Mary Barra.

The Twitter missives were a remarkable turnabout from the night before, when Trump told Fox News he wasn’t invoking the Cold War-era Defense Production Act to compel manufacturers to make ventilators because companies including GM had already stepped up.

GM sold the Lordstown plant facility last year. Trump boasted about this on Twitter. pic.twitter.com/hQI8LExj86

He called on GM to open an assembly plant in Ohio that it no longer owns and make the devices there immediately.

A little more than an hour after Trump’s first tweet, GM and Ventec announced they’ll build ventilators at the automaker’s parts plant in Kokomo, Indiana, which they’ve been working around-the-clock for a week to convert into a medical-device facility.

GM said in an emailed statement that it will be “donating its resources at cost.” It’s also beginning to make surgical masks at a manufacturing facility in Warren, Michigan, north of its Detroit headquarters. Output will start next week, ramp up to 50,000 a day within two weeks and may eventually get to 100,000.

Ford adapting F-150 seat cooling fans to use in respirators

GM was growing exasperated with the Trump administration because it had done the work to secure suppliers for the 700 components needed to make ventilators. The automaker had even started hiring because the 300 workers on staff in Kokomo won’t be enough to handle the proposed volume, a person familiar with the situation said.

But the companies were waiting on the federal government to decide how many machines it will need, how many producers it will hire and, by extension, how much it will pay Ventec.

Originally, the two manufacturers were talking about US$250 million that would go to the Seattle-based company and its components suppliers to get production moving, said people familiar with the matter, who asked not to be identified because the deliberations were private.

GM and Ventec have opted to go ahead with building ventilators without a federal contract and sell to any buyer.

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”.

GM and Ventec said they’re poised to deliver the first ventilators in April and ramp up manufacturing capacity to more than 10,000 a month. GM will deploy about 1,000 workers for the effort, and the two companies said they have the infrastructure and capability to boost production more, depending on the needs of the federal government.

“We are proud to stand with other American companies and our skilled employees to meet the needs of this global pandemic,” Barra said in the statement. “This partnership has rallied the GM enterprise and our global supply base to support Ventec, and the teams are working together with incredible passion and commitment.”
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