The US Department Of Health And Human Services has placed a $489.4 million order on Ventec Life Systems through General Motors Company (NYSE:GM). As part of the deal, General Motors will supply 30,000 life-sustaining machines to the US government.
General Motors to produce 6,132 machines by June
General Motors will produce 6,132 portable VOCSN ventilators by June 2020. The company will supply the balance ventilators by August 2020. It will produce the ventilators at its Kokoma, Indiana based plant.
Chris Brooks, Chief Strategic Officer of Ventec said the company will produce 2,000 ventilators monthly at its production plant based in Bothell by this summer. However, the present contract focuses on the production at General Motor’s Indiana unit. He said the teams that comprise the design and production engineers of Ventec travel back and forth to the General Motor’s Indiana plant to get those units online. Alex Azar, secretary (Human Health Services) said he is grateful to General Motors to expand the supply of ventilators by working for the federal government.
Critical care ventilator ensures precise flow air to the patient
The critical care ventilator – VOCSN allows delivering a precise flow of air to the patient. It prevents conditions like under inflate or over inflate. The average cost of a ventilator produced by General Motors is $17,000. However, the modified versions do not comprise a suction unit and nebulizer. According to Brooks, General Motors will provide 1,000 workers and its factors for the venture.
Donald Trump invokes defense production act
Donald Trump, the President of the US, has invoked the defense production act on March 27, 2020. It forces General Motors to manufacture ventilators. The federal government can force other factories in the US to manufacture PPEs under the defense production act.
According to a communiqué from General Motors on Wednesday, the company together with Ventec is working to expedite the production of critical care ventilators to support the frontline medical professionals to cure seriously ill patients. Ford will also manufacture ventilators in alliance with Airon, which is based in Florida.
Demand for ventilators
The demand for ventilators expects to reach 10,000 soon. According to the University of Washington, around 16,524 ventilators are required by this weekend to cure COVID-19 patients.