Mismanagement and miscommunication by President Donald Trump and his top advisors have reportedly hamstrung the construction of tens of thousands of sorely needed ventilators.

The White House this week abruptly canceled a planned $1.5 billion agreement by the Federal Emergency Management Agency to buy as many as 80,000 of the breathing devices from a new partnership between General Motors and the medical device manufacturer Ventec Life Systems.

Despite public statements earlier this week that he had given U.S. automakers a “go-ahead” to start making ventilators, Trump and senior administration officials began fretting over the deal’s price tag, according to The New York Times.

The president and top advisors worried that GM and Ventec would not be able to deliver enough ventilators. The companies’ projections for the first run of production fell from 20,000 ventilators to 7,500. However, at the same time, the White House and federal officials also feared that the federal government would end up with a surplus of the devices. 

The estimated $1.5 billion cost – about $18,000 per ventilator – amounts to 0.075% of the $2 trillion relief package passed by the Senate early Thursday. As the Times pointed out, it’s also roughly the cost of just 18 F-35 fighter jets. 

Ventilators are in severely short supply as the number of cases of coronavirus, or COVID-19, have soared. State officials and medical workers across the country have cheered the arrival of even a handful of ventilators, let alone a few hundred or several thousand. 

Last week, GM became the first automaker to publicly acknowledge that it was considering joining efforts to help make ventilators and other devices. Ford and Tesla have since taken similar steps. All three automakers, and many others, had halted their assembly lines to help slow the spread of coronavirus. 

While Trump has implied that he had given automakers permission to start making ventilators, the companies do not need White House sign-off to make the devices. However, companies are seeking some assurance that there will be a clear buyer for the ventilators that they build – especially manufacturers such as GM, Ford and Tesla that don’t normally build medical devices, and which will need weeks to either reconfigure current factories or invest in new facilities. 

The FEMA deal would provide such assurance to GM and Ventec. However, Trump has refrained from taking similar steps on a broader scale, namely implementing the provision of the Defense Production Act of 1950 that would allow federal officials to direct private industries to begin making certain goods – here, amid the coronavirus or COVID-19 pandemic, ventilators, respirators, face masks and face shields to alleviate severe shortages in the equipment. Yet while Trump has said that the Act “is in full force,” these provisions have not been instituted – further slowing ventilator production. 

The Trump administration says it is now considering competing deals. 

Share:
More In Business
Stephanie Shojaee on Paving the Way for Women in Real Estate
With real estate being a largely male-dominated industry, Stephanie Shojaee, vice president and chief marketing officer at development company Shoma Group, joined Cheddar News to discuss how she took on the gender gap for women to achieve leadership roles, starting at her own company. “It's been very important to teach all the women that work here, especially the younger ones, that they shouldn't change themselves," she said. "You need to be happy with who you are and just keep breaking barriers."
Hot summer could lead to rolling blackouts
We are already starting to feel the effects of summer. Heat waves in Texas and California are already sending temperatures soaring. That could spell trouble for the nation's power supply. there are new concerns about outages in many areas of the country. Cheddar's Shannon Lanier explains the two main causes of blackouts, and what states are doing to keep the lights on and the air conditioning running.
Pinterest Acquires A.I.-Powered Platform THE YES as Part of Online Shopping Push
Pinterest is making a big move as it pushes further into online shopping. The image-focused social media site is acquiring A.I.-powered shopping platform THE YES as it focuses on enhancing the user shopping experience. THE YES's technology gives users a personalized feed of products based on their preferences, and Pinterest is banking on the tech to give it an advantage among other social media apps with built-in shopping features. Julie Bornstein, founder and CEO of THE YES, joins Closing Bell to discuss the company's unique technology, why it agreed to sell to Pinterest, her vision as she takes over shopping initiatives, and more.
U.S. Stocks Closed at Session Highs Tuesday
U.S. stocks close Tuesday at session highs after a subpar start to the trading day. Tim Chubb, Chief Investment Officer at the wealth advisory firm, Girard, joins Cheddar News' Closing Bell to discuss. 'We're starting to see the moderation of three core things -- we've seen the moderation of prices, we've seen the moderation of wage growth we've seen in the labor market, and we've also seen a moderation of job openings,' he says.
Gymnasts Seek $1 Billion From FBI Over Larry Nassar Case
The victims from the USA gymnastics sexual abuse scandal continue to seek justice. Survivors of Larry Nassar are seeking more than one-billion dollars from the FBI for failing to stop the convicted sports doctor when the agency first received allegations. According to a report released by the Justice Department's Inspector General, FBI agents knew in July of 2015 that Nassar was accused of abusing gymnasts; however, Nassar wasn't arrested until December of 2016. The group that filed the claim includes Olympic medalist Simone Biles and around 90 other women. Louise Radnofsky, sports reporter at The Wall Street Journal, joins Cheddar News' Closing Bell to discuss.
Saudi-Backed LIV Golf Tour Begins With Dustin Johnson & Phil Mickelson, Without Tiger Woods
A controversial professional golf tour backed by Saudi Arabia tees off on Thursday. Today, two-time Major winner Dustin Johnson announced he's resigned from the PGA Tour ahead of headlining the Saudi-backed tour, called the LIV Golf Invitation Series. The announcement comes as the PGA tour has threatened disciplinary action for its golfers who take part in the Saudi golf league event, which will also feature notable golf stars like Phil Mickelson and Sergio Garcia; however, LIV Golf's CEO, Greg Norman, told The Washington Post that Tiger Woods rejected a contract worth 'high nine digits' to play in the tour. Chris Bumbaca, reporter for USA Today Sports, joins Cheddar News' Closing Bell to discuss.
Load More