Trump Invokes Defense Production Act to Force GM Ventilator Manufacturing
President Trump orders General Motors to prioritize federal ventilator contracts under the Defense Production Act amid an ongoing contract dispute. GM maintains it is working around the clock to produce the life-saving equipment at cost.
President Trump signs a presidential directive under the Defense Production Act that orders General Motors to produce ventilators and prioritize federal contracts. This action marks a sudden reversal from Trump, who previously praises GM and other manufacturers for volunteering to ramp up production of critical medical equipment during the COVID-19 pandemic.
The order emerges amid a heated dispute over a federal contract, with Trump accusing GM of wasting time and asking for "top dollar." GM and its partner Ventec Life Systems already announce plans to manufacture the ventilators "at cost" at a GM engine plant in Kokomo, Indiana, utilizing about 1,000 workers even without a finalized purchase order.
GM responds to the presidential order by stating that its commitment to building Ventec's critical care ventilators never wavers. The automaker emphasizes that its team is working around the clock with Ventec and its supply base to provide life-saving technology to medical professionals and patients as rapidly as possible.