GM gets $500 mln ventilator contract

The United States awarded General Motors a $489 million contract Wednesday to produce ventilators to treat severely sick coronavirus patients.

Fred Katayama reports.

GM is already making surgical masks in Michigan, and soon it will turn out ventilators in Indiana.

The U.S. Department of Health and Human Services awarded a nearly half-billion dollar contract to the automaker Wednesday to produce 30,000 ventilators for hospitals in short supply battling the coronavirus.

The government's first contract for ventilator production comes just five days after President Donald Trump signed an order requiring GM to make that medical device under the Defense Production Act.

He had accused GM on Friday of wasting time in negotiations but shifted gears on Sunday, praising the auto maker.

GM will work with Ventec Life Systems to make the ventilators and deliver the first batch of roughly 6,000 by June 1.

GM says it has the capacity to supply more if needed.

It says it is spending tens of millions of dollars to retool the factory.

Just last week, its rival Ford said it's working with General Electric to produce 50,000 ventilators in Michigan.