President Donald Trump is getting frustrated with car companies that promised to make ventilators for Covid-19 patients. He is considering using his emergency powers to make General Motors (GM) and Ford keep their promises.
“They said they would give us 40,000 much-needed ventilators ‘very quickly,’” Trump tweeted on Friday. “Now they are only saying they can deliver 6,000 by late April, and they want a lot of money for them.”
He mentioned that working with GM’s CEO Mary Barra is always difficult, and he plans to use the Defense Production Act. This law gives the president the power to make companies produce important supplies during emergencies.
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”.
— Donald J. Trump (@realDonaldTrump) March 27, 2020
“General Motors MUST immediately open their stupidly abandoned Lordstown plant in Ohio,” the president’s rant continued – referring to the plant GM shuttered after promising him to keep jobs in the US – “or some other plant, and START MAKING VENTILATORS, NOW!!!!!!” Ford should do the same, he added, also in capital letters.
General Motors MUST immediately open their stupidly abandoned Lordstown plant in Ohio, or some other plant, and START MAKING VENTILATORS, NOW!!!!!! FORD, GET GOING ON VENTILATORS, FAST!!!!!! @GeneralMotors @Ford
— Donald J. Trump (@realDonaldTrump) March 27, 2020
Last Friday, GM said it would work with Ventec Life Systems to increase the production of ventilators, which are important for helping the most seriously ill Covid-19 patients. Ford also said it was in early talks with the federal government about making these devices. It seems like the car companies are taking too long, which has upset the president.
Trump’s administration has not been quick to make a deal with GM because they think the $1 billion GM wants is too high. According to the New York Times, Trump backed away from GM to look for other suppliers.
Until now, Trump has said that American companies are ready and able to provide all the supplies needed to fight the Covid-19 pandemic. “We are being overwhelmed in a good way by companies that want to help our country,” he said at a press conference last week, mentioning GM as one of the companies.
However, it seems that the free market isn’t working as well as expected, so Trump may have to use the Defense Production Act soon. He activated the act last week as a backup plan, which would let the government require companies to produce necessary equipment. Just days ago, he insisted that “we don’t need it.”
Lawmakers from both parties are urging Trump to enforce this act. Although he has hesitated so far, the situation might push him to take action.
General Motors is likely to benefit from this crisis. Even though they have stopped production and cut worker pay, they can still access the $500 billion rescue fund from the government’s $2 trillion coronavirus relief package. GM has managed to survive tough times before, especially when it got an $80 billion bailout after the 2008 financial crisis, along with Ford and Chrysler.
