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GM’s Ventilator Deal on Hold Over High Production Cost

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Over a week ago, General Motors made headlines when it announced it would be partnering with medical equipment company Ventec Life Systems to produce ventilators at its plant in Indiana. The ventilators are to be donated to hospitals across the United States that are currently overwhelmed with coronavirus patients.

But in a report published by The New York Times, the White House and the Federal Emergency Management Agency are not too happy with the reported $1 billion production cost. As a result, the federal government is now reportedly looking for another potential deal.

However, a spokesman for GM said that “Project V,” which refers to the automaker’s ventilator program, was moving very fast and that “there’s no issue with retooling.”

General Motors office as seen from outside
The only thing General Motors is said to be waiting for is information from the government on how many ventilators are needed and who would be paid to build the devices.

A representative of Ventec Life Systems also supported the statement.

“Ventec and GM have been working at breakneck speed to leverage our collective expertise in ventilation and manufacturing to meet the needs of the country as quickly as possible and arm medical professionals with the number of ventilators needed to save lives,” Ventec’s Chief Strategy Officer Chris O. Brooks said.

The only thing that the companies are said to be waiting for is information from the government on how many ventilators are needed and who would be paid to build the devices.

Administration officials are reportedly concerned about having an “expensive” surplus of the machines. 

Despite governors and hospitals across the country calling for an immediate need for ventilators, President Donald Trump has expressed skepticism, saying “I don’t believe you need 40,000 or 30,000 ventilators” on Fox News. The figures were based on a request made by the state of New York.

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