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
Disney content has gone dark on YouTube TV: What you need to know
Disney content has gone dark on YouTube TV, leaving subscribers of the Google-owned live streaming platform without access to major networks like ESPN and ABC. That’s because the companies have failed to reach a new licensing deal to keep Disney channels on YouTube TV. Depending on how long it lasts, the dispute could particularly impact coverage of U.S. college football matchups over the weekend — on top of other news and entertainment disruptions that have already arrived. In the meantime, YouTube TV subscribers who want to watch Disney channels could have little choice other than turning to the company’s own platforms, which come with their own price tags.
Universal Music and AI song generator Udio partner on new AI platform
Universal Music Group and AI platform Udio have settled a copyright lawsuit and will collaborate on a new music creation and streaming platform. The companies announced on Wednesday that they reached a compensatory legal settlement and new licensing agreements. These agreements aim to provide more revenue opportunities for Universal's artists and songwriters. The rise of AI song generation tools like Udio has disrupted the music streaming industry, leading to accusations from record labels. This deal marks the first since Universal and others sued Udio and Suno last year. Financial terms of the settlement weren't disclosed.
Load More