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Ford’s work with GE Healthcare to begin manufacturing ventilators for badly stricken coronavirus patients now comes with a federal contract. The U.S. Department of Health and Human Services awarded the companies a contract worth $336 million under the Defense Production Act to deliver 50,000 units by July 13.
Ford announced late last month it was partnering with GE Healthcare to launch production of a ventilator device made by Florida-based Airon Corp. from its Rawsonville Components Plant in Michigan. Production is set to kick off next week using more than 500 paid UAW volunteers. GE Healthcare is licensing the Model A-E from Airon.
The contract breaks down to $6,720 per ventilator unit, which reportedly normally sell for $7,000. It’s not clear how much of the costs for both companies are being covered by the contract. Ford deferred to GE Healthcare, which did not respond to Autoblog’s email.
It’s one facet of Ford’s multi-pronged response to aiding in the production of critically needed personal protective equipment and other medical devices needed to fight the COVID-19 outbreak. Ford is also producing respirators, medical gowns, surgical masks, plastic face shields and test kits, either directly at its facilities or by helping suppliers or other companies ramp up production. Ford first announced its partnerships with GE Healthcare and 3M on March 24.
HHS last week announced it had awarded a nearly $490 million contract to General Motors to build ventilators with Washington-based Ventec Life Systems from its plant in Kokomo, Indiana. As in that deal, the Ford-built ventilators will be delivered to the federal government’s Strategic National Stockpile.
To date, HHS says it has finalized contracts to produce more than 41,000 ventilators by the end of May and more than 187,000 units by the end of the year.
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