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GM facility to build ventilators after the $ 489.4 million contract ends



General Motors employees reported on their first day of work on March 31, 2020 at the GM manufacturing facility in Kokomo, Indiana, where GM and Ventec Life Systems are teaming up to manufacture care ventilators. in the response to the COVID-19 pandemic.

GM

An old General Motors auto facility in Indiana will continue building critical care ventilators after it is expected to complete a $ 489.4 million government contract this month for 30,000 appliances. for the national reserve.

GM will lease its component on-campus building to Ventec Life Systems in Kokomo, Indiana, a company the automaker has teamed up with to build ventilators when the first wave of Covid cases- 1

9 soaring in America this spring.

GM spokesperson Dan Flores said: “The entire GM team has worked hard and contributed to better things, but clearly our focus needs to be on making cars related to cars.” . “Ventec is the specialist here. We will step back and they will take responsibility after the contract is signed.”

The companies are on track to finalize their contracts with the government for ventilators by the end of the month, Flores said. To date, the facility has manufactured and delivered more than 20,000 devices, according to officials.

Ventilators are very important in saving lives during a pandemic coronavirus. While their demand has decreased in recent months, the healthcare industry is preparing for the second Covid-19 rally.

Companies refuse to disclose the terms of the lease or how long Ventec expects to take over the building.

General Motors President and CEO Mary Barra (and Ventec Life Systems CEO Chris Kiple) chatted with a worker while touring GM’s manufacturing facility in Kokomo, Indiana on April 14, 2020.

GM

The facility employs about 800 people, including about 70 full-time hourly GM employees who are expected to return to their previous workplaces or be laid off. The remaining employees – a combination of Ventec and contract or temporary workers – are expected to continue making ventilators for the Washington-based medical equipment company upon request.

Chris Brooks, Ventec’s Chief Strategy Officer, told CNBC about future employment: “It’s a flexible and flexible situation from day one. More details are expected to be released when companies sign contracts with the government, he said.

The companies announced they would produce ventilators on March 27 after President Donald Trump criticized automaker and CEO Mary Barra for not being fast enough to produce life-saving ventilators and want “top dollar” to do so.

Following the announcement, Trump ordered GM to build equipment under the Defense Manufacturing Act, a Korean War-era law that could force some US companies to produce raw materials that were in short supply during the Great Times. panic.


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