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Trump Backs GM into a Corner, Orders It to Make Ventilators to Fight Coronavirus

“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 orders GM to start making ventilators 1 photo
Photo: GM
This is the tweet American president published earlier in the day, just as the United States was becoming the first country on Earth to pass the 100,000 coronavirus infections mark. A few hours later Trump invoked the Defense Production Act that effectively forces General Motors into manufacturing ventilators.

"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 cited by CNN.

Trump initially invoked the act on March 18, but said at the time he would not enforce it yet, as hopefully there will be no need. As the situation in the States gets worse by the hour, that has apparently changed.

In a response to the presidential decision, GM avoided voicing an opinion, saying only that it already started looking into ways to help.

The Defense Production Act came to be during the Korean War, and has been used several times since. There are three major sections in the act.

The first one allows the president to ask businesses to sign contract and fulfill orders needed for national defense, the second allows the allocation of materials and services in the interest of national defense, and the third one even lets the government control the economy. The requisition of property is also covered by the act.

It is unclear at this point how the decision would affect GM’s current plans to make ventilators, or what the penalty would be if it fails to comply. It seems the decision only affects GM, and not Ford and FCA.

We’ll update this story as soon as more information becomes available.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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