Trump orders GM to make ventilators under Defense Production Act

President Donald Trump on Friday ordered General Motors to produce ventilators under the Defense Production Act.
"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," the White House said in a statement.
Under the order, HHS has the authority to force GM to "accept, perform, and prioritize federal contracts for ventilators."
The Trump administration had been criticized for not invoking the Defense Production Act sooner.
But earlier in the day, Trump signaled that his patience with automakers was running short and that he thought they were dragging their feet.
"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!!!!!!" Trump tweeted. General Motors sold its Lordstown factory in 2019.
Soon after, General Motors announced that it would make Ventec Life Systems ventilators, at its Kokomo, Indiana plant starting in April. The company plans to ramp up production to 10,000 units per month, possibly more.
The Trump administration thought that it had struck a deal with General Motors, but it appears that the negotiations broke down.
"We thought we had a deal for 40,000 ventilators . . . price became a big object," Trump said. He suggested that GM had lowered its commitment to 6,000 ventilators.
Trump later ordered HHS and the Department of Homeland Security to use the Defense Production Act to increase U.S. production of personal protective equipment, or PPE, and ventilators.
HHS will be able to issue loans and guarantee commercial loans to increase domestic production of PPE and ventilators and make purchases or contract to boost U.S. PPE and ventilator supplies.
"This invocation of the (Defense Production Act) should demonstrate clearly to all that we will not hesitate to use the full authority of the federal government to combat this crisis," Trump said during a press conference.
Peter Navarro, a leading voice on trade policy in the Trump administration, will serve as National Defense Production Act policy coordinator for the federal government, Trump said.