Trump Invokes Production Act Compelling GM to Make Ventilators
(Bloomberg) -- President Donald Trump on Friday invoked the Defense Production Act that would compel General Motors Co. to manufacture ventilators for Coronavirus patients.
“Today, I signed a Presidential Memorandum directing the Secretary of Health and Human Services to use any and all authority available under the Defense Production Act to require General Motors to accept, perform, and prioritize Federal contracts for ventilators,” Trump said in a statement.
“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,” Trump added. “Today’s action will help ensure the quick production of ventilators that will save American lives.
The Law Trump Can Use to Order More Ventilators: QuickTake
The president had been reluctant to use the act, which grants the government vast authority over industrial production during a crisis, despite growing calls that it might be necessary to secure enough ventilators. On Fox News Thursday night, he said that companies, including GM, were responding appropriately without the act.
But earlier Friday, he assailed General Motors, saying it isn’t moving fast enough to make ventilators and wanted to charge too much, and threatened to force the company into action.
He directly attacked the company’s chief executive officer, Mary Barra, and said he might invoke the Defense Production Act to force the company to move faster on the devices.
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