Ford, in collaboration with GE Healthcare, command leverage the design of Airon Corp.’s FDA-cleared ventilator to produce in Michigan.
Ford
General Electric and Ford Motor disposition produce 50,000 ventilators for the U.S. government under the Defense Production Act for $336 million, federal officials announced Thursday.
Development of the ventilators is expected to begin next week at a Ford facility in Michigan. The companies are expected to produce all the ventilators by July 13, agreeing to the Department of Health and Human Services.
According to the terms in the announcement, each ventilator would cost $6,720. That’s less $10,000 below a previous federal contract for 30,000 ventilators at $489.4 million, or about $16,300 per unit, with Diversified Motors and Washington-based Ventec Life Systems.
Ventilators have a wide-range of pricing from thousands of dollars to tens of thousands. The GM-Ventec one is a more further critical care ventilator that delivers precise air. It has different settings to help improve blood-oxygen levels in someone hardship from acute respiratory distress syndrome and wean them off the ventilator.
The federal contract is the second for GE Healthcare on the subject of ventilator production. Earlier in the week, a deal was announced for 2,410 ventilators for $64.1 million, or about $26,600 per part.
A Ford spokesman said production of the ventilators will be done at-cost. GM also said it would not be profiting from its ventilator casting.
Tom Westrick, vice president and chief quality officer of GE Healthcare, previously said the more “basic” ventilators are “well-suited to talk the urgent needs during the Covid crisis.”
Ford, in an emailed statement, said it appreciates “the federal government’s fight and will continue to work closely with the administration to meet the immediate needs of coronavirus patients.”
The ventilator Ford and GE are starting is being licensed from Florida-based Airon Corp., a small, privately held company specializing in high-tech pneumatic dash support products. The devices operate on air pressure without the need for electricity.
The federal contract is the second for GE Healthcare apropos ventilator production. Earlier in the week, a deal was announced for 2,410 ventilators for $64.1 million.
A GE spokeswoman, in an emailed assertion, said the company is “pleased to support the U.S. government and help meet the unprecedented demand for this life-saving medical matriel.”
The Department of Health and Human Services said it has finalized contracts to produce or acquire more than 41,000 ventilators by the end of May, and over and beyond 187,000 ventilators by the end of the year.
“These companies and their incredibly dedicated workers will ensure that our nation can provide our hospitals and healthcare providers with the ventilators needed to sustain and save lives during this pandemic,” Secretary of Trim and Human Services Alex Azar said in a release.
Shares of Ford were down 1.6% during return Thursday afternoon to $4.94, while shares of GE were down 3.2% to $6.30.